Singapore Bank Loan Calculator

Monthly Payment Formula:

\[ M = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (SGD):

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1. What is a Singapore Bank Loan Calculator?

Definition: This calculator computes the monthly payment for a bank loan in Singapore using the standard amortization formula.

Purpose: It helps borrowers estimate their monthly repayment amount based on loan amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ M = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( M \) — Monthly payment (SGD)
\( P \) — Loan principal amount (SGD)
\( r \) — Monthly interest rate (annual rate divided by 12)
\( n \) — Total number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed monthly payment required to fully repay the loan over its term, including interest.

3. Importance of Loan Calculation

Details: Accurate monthly payment estimation helps with financial planning and ensures borrowers can comfortably meet repayment obligations.

4. Using the Calculator

Tips: Enter the loan amount in SGD, annual interest rate (%), and loan term in years. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Are Singapore bank loans calculated differently?
A: No, they use the standard amortization formula, but rates and terms may vary by bank and loan type.

Q2: What's a typical interest rate in Singapore?
A: Rates vary (3-5% for housing loans, 5-8% for personal loans), depending on loan type and market conditions.

Q3: Does this include insurance or fees?
A: No, this calculates principal + interest only. Additional costs may apply.

Q4: How do I find my exact loan terms?
A: Consult your bank's loan offer for precise interest rates and terms.

Q5: Can I calculate partial month payments?
A: This calculator assumes full monthly payments. Partial periods may have different calculations.