Property · free tool
Mortgage calculator: monthly instalment and total interest
A S$500,000 loan over 25 years costs about S$2,268 a month at 2.6% (the HDB loan rate) and S$2,371 at 3.0%. Enter your own loan to see the instalment, total interest and how the balance falls each year.
How it works
The instalment is the fixed monthly payment that clears the loan by the end of the tenure: instalment = loan × r ÷ (1 − (1 + r)−n), where r is the yearly rate ÷ 12 and n is the number of months.
Early payments are mostly interest. As the balance falls, more of each payment goes to principal. Bank packages are often fixed for 2 to 3 years, then float, so test a higher rate too (see the stress test).
Worked example
- S$500,000 over 25 years at 2.6%: S$2,268 a month, total interest about S$180,504.
- Same loan at 3.0%: S$2,371 a month, total interest about S$211,317.
- At 4.0%: S$2,639 a month.
A 0.4-point difference in rate costs about S$30,813 over 25 years.
Common questions
What is the HDB loan interest rate?
The HDB concessionary loan rate is 2.6% a year, pegged at 0.1 point above the CPF Ordinary Account rate. It has stayed at 2.6% for many years but can change.
Can I switch from an HDB loan to a bank loan?
Yes, you can refinance from an HDB loan to a bank loan. You cannot switch back to an HDB loan afterwards.
Should I pick a shorter tenure?
A shorter tenure means a higher instalment but much less interest. A common approach is to take a tenure you can comfortably afford, then make partial prepayments when you can.
What next
Figures as of . Rules change; confirm with your bank, HDB, CPF Board and IRAS before you commit.
Official sources: MAS · HDB · IRAS · CPF
This calculator is for information only and is not financial, property or legal advice. Jaimes Tan is not a licensed financial adviser or property agent.