Learn how to calculate car loan payments, understand interest rates, and plan your car purchase budget.
Car Loan Calculator
Enter your car details above to calculate your loan payments
How to Use the Car Loan Calculator
Enter Vehicle Price
Input the base price of the car excluding COE. This is the manufacturer's price or dealer's quoted price.
Add COE Price
Include the current COE premium for your car category. Check latest COE prices from LTA.
Set Down Payment
Enter your down payment amount. Minimum is usually 30% of total car price in Singapore.
Input Interest Rate
Enter the annual interest rate offered by your lender. Rates typically range from 2.5% to 8%.
Choose Loan Tenure
Select your preferred loan duration. Longer tenures mean lower monthly payments but higher total interest.
Understanding Car Loan Calculations
Car Loan Formula
Monthly Payment = [P × r × (1+r)^n] / [(1+r)^n - 1]
P = Principal loan amount (Total car price - Down payment)
r = Monthly interest rate (Annual rate ÷ 12)
n = Total number of payments (Years × 12)
Example Calculation
Given:
- Vehicle Price: $80,000
- COE Price: $95,000
- Total Car Price: $175,000
- Down Payment: $52,500 (30%)
- Loan Amount: $122,500
- Interest Rate: 2.68% p.a.
- Loan Tenure: 5 years
Calculation:
- Monthly interest rate (r) = 2.68% ÷ 12 = 0.0223%
- Number of payments (n) = 5 × 12 = 60
- Monthly Payment = $2,189.45
- Total Interest = $8,867
- Total Amount Paid = $131,367
Factors Affecting Car Loan Payments
Car Price
Higher car prices result in larger loan amounts and higher monthly payments. Consider your budget carefully.
Down Payment
Larger down payments reduce loan amount and monthly payments. Minimum 30% required in Singapore.
Interest Rate
Lower rates significantly reduce total cost. Shop around for the best rates from different lenders.
Loan Tenure
Longer tenures reduce monthly payments but increase total interest paid over the loan period.
Credit Score
Better credit scores qualify for lower interest rates, reducing overall loan costs.
COE Prices
COE premiums significantly impact total car cost. Monitor COE trends for better timing.
Loan Tenure Comparison
| Loan Tenure | Monthly Payment | Total Interest | Total Payment | Savings vs 7 years |
|---|---|---|---|---|
| 3 years | $3,543 | $5,548 | $128,048 | $8,319 |
| 5 years | $2,189 | $8,867 | $131,367 | $5,000 |
| 7 years | $1,625 | $13,867 | $136,367 | $0 |
*Based on $122,500 loan at 2.68% interest rate
Tips for Better Car Loan Planning
Use Multiple Scenarios
Calculate different combinations of down payment and tenure to find the best fit for your budget.
Factor in Total Ownership Cost
Include insurance, road tax, maintenance, and fuel costs in your budget planning.
Monitor COE Trends
COE prices fluctuate bi-weekly. Time your purchase when COE prices are favorable.
Compare Interest Rates
Even a 0.5% difference in interest rate can save thousands over the loan period.
Additional Car Ownership Costs
Annual Costs to Consider
Fixed Annual Costs
- Road Tax: $400 - $2,000
- Insurance: $800 - $3,000
- Season Parking: $1,200 - $3,600
- Inspection (older cars): $50 - $100
Variable Costs
- Fuel: $1,500 - $4,000
- Maintenance: $500 - $2,000
- Repairs: $200 - $1,500
- ERP/Parking: $500 - $2,000
Total Annual Ownership Cost: $4,150 - $18,200
This translates to approximately $345 - $1,517 per month on top of your loan payments.
Pro Tip
Use the 20/4/10 rule: Put down at least 20%, finance for no more than 4 years, and keep total monthly vehicle expenses under 10% of gross income.
Ready to Apply for a Car Loan?
Use our calculator results to compare loan options and find the best car financing deal.