Calculator
What that loan actually costs you.
Monthly instalment, total interest, total repayable — and, the part most calculators leave out, what your quoted rate costs on the other basis.
Calculator
Monthly instalment, total interest, total repayable — and, the part most calculators leave out, what your quoted rate costs on the other basis.
If the quote does not say, ask. It changes the answer more than the rate itself does.
Monthly instalment
$3,042.19
Total interest
$9,519
Total repayable
$109,519
The number the other lender would quote
A 6% reducing quote over 3 years works out at about 3.17% flat. This compares interest on the same amount and term. Fees, insurance and repayment conditions can change the total cost; discuss those directly with the bank.
More on the difference in the glossary.
This is arithmetic on the numbers you typed in. It is not a quote, an offer, or an indication that any facility is available to you. Fees, insurance and processing charges are not included, and every lender sets its own terms. Nothing you enter here leaves your browser.
Request a bank introduction — WhatsApp +65 8274 3838Why the basis matters
A business loan repayment calculator works out the monthly instalment, the total interest and the total repayable from three numbers: the amount, the tenure and the interest rate. The part that matters in Singapore is which basis that rate is quoted on. A flat rate charges interest on the original sum for the whole term, while a reducing-balance or effective rate charges only on what is still outstanding — so the same percentage produces very different costs, and a flat quote always looks cheaper than it is. Convert both to the same basis before comparing any two offers.
The reason this catches people is that a flat rate is not a lie — it is a real number, calculated correctly, and it is simply calculated on a different thing. Interest on the original sum for the whole term is more interest than interest on a balance that falls every month. So the flat figure prints smaller, and it is the figure that ends up in the comparison.
The rule of thumb people repeat — that a flat rate is about double the effective one — is close over long tenures and wrong over short ones. The calculator above solves it properly instead of doubling.
Related: effective interest rate · flat rate · tenure · secured vs unsecured
Last reviewed .
Straight answers
A flat rate charges interest on the amount you originally borrowed, for every year of the term, regardless of how much you have already repaid. A reducing-balance or effective rate charges interest only on what is still outstanding, which falls with every instalment. The same percentage on a flat basis therefore costs considerably more, and the gap widens the longer the tenure.
It varies, which is exactly the problem. Banks commonly quote an effective rate; some non-bank lenders quote flat. A quote that does not say which basis it uses is incomplete, and it is a fair question to ask before comparing it against anything else.
No. It works only on the amount, tenure and rate you enter. Processing fees, insurance, legal or valuation costs and any early repayment charge sit outside it, and those can be the difference between two otherwise identical offers. Ask for the full cost in writing before signing.
No. It is arithmetic on the numbers you typed in. It says nothing about whether a lender will approve you, at what rate, or at all. Every application is subject to the lender's own assessment.
No. The calculator runs entirely in your browser. Nothing you type is sent to us, saved, or used to prefill anything.