Car loan EIR calculator
A '2.78% flat' car loan in Singapore really costs about 5.19% a year. Enter your numbers to see your true rate, and what it adds up to in dollars.
Loan details
Live estimateTrue loan cost
7 yearsTrue loan cost 5.19% a year. Monthly instalment $1,422.14. Total interest $19,460.
Your true rate (EIR)
5.19%a year
1.9x the advertised flat rate
Advertised flat rate
2.78% a year
What lenders quote first
Total interest over 7 years
$19,460
Monthly instalment
$1,422.14
Total you repay
$119,460
A flat rate is charged on the full loan for the whole tenure, even as you pay it down, so the rate you actually pay is higher than the number you are quoted. Always compare car loans on EIR, not the flat rate.
Why a flat rate understates the cost
A flat car loan charges interest on the full original loan amount for the whole tenure, even as each monthly payment reduces what you owe. That is why the true effective rate is often almost double the advertised flat rate. Banks must disclose the EIR, and this calculator shows it alongside the total interest in dollars.