See your true monthly cost, total interest, and effective interest rate before you sign anything.
Year: 2026. Rates verified: June 2026
A flat rate charges interest on the original loan amount throughout the tenure. The Effective Interest Rate (EIR) reflects the true cost since you are repaying the principal monthly, so EIR is roughly 1.8-1.9x the advertised flat rate.
Rates vary by lender, and we have no official figure for a typical rate. As an example only, a flat rate of 3.5% to 6% per annum over 36 months works out to an EIR of about 6.6% to 11.1% per annum. Check the rate your lender quotes.
Yes. Every calculator on AsiaCalc is completely free to use with no signup required. All calculations run in your browser, so the figures you enter are never uploaded or stored.
The results are estimates based on published rates and the details you enter. They are intended for planning and general reference. For decisions that matter, confirm the figures with the official source or a qualified professional.
⚠️ Financial Disclaimer: Calculations on this site are for informational purposes only and do not constitute financial advice. Results are estimates based on published rates and may not reflect your individual circumstances. Always verify with official sources and consult a qualified financial advisor before making financial decisions.
Personal loan repayments are calculated using the standard amortization formula, distributing your loan repayment across equal monthly installments. Each payment covers the interest accrued on the remaining balance plus a portion of principal. Early payments are mostly interest; later payments are mostly principal. The effective interest rate (EIR) is the true cost of borrowing and is higher than the advertised flat rate.
Most personal loans in Singapore advertise a "flat rate" (e.g., 3% per annum) but the actual borrowing cost - the Effective Interest Rate (EIR) - is approximately 1.9x higher. A 3% flat rate equates to approximately 5.7% EIR. This is because the flat rate is calculated on the original loan amount while the EIR accounts for the declining balance.
A $20,000 personal loan at 3% flat rate over 36 months: monthly payment = approximately $605.56. Total paid = $21,800. Total interest = $1,800. The EIR on this loan is approximately 5.7% per annum. Compare this to a credit card at 26.8% - personal bank loans are substantially cheaper for planned borrowing.