Progressive Payment Calculator

Progressive Payment Schedule

View the progressive payment schedule for a property under construction.

Total Before TOP -
Total Interest -
Monthly at TOP -
Loan Drawdown -
Stage%AmountInterest

How to Use the Progressive Calculator

Key Takeaways

  • Under the Progressive Payment Scheme (PPS), you draw down your bank loan in tranches as construction milestones are certified — meaning your monthly interest obligation grows from near-zero at booking to full loan repayment only after TOP.
  • Interest-only payments during construction (before TOP) can seem manageable at $800–$1,500/month, but the step-up to full principal + interest repayments at TOP ($4,000–$6,000/month) catches many buyers off-guard who did not plan ahead.
  • The largest single payment tranche — 25% at TOP and 15% at legal completion — means buyers must keep significant liquid reserves available well into the construction period, not just at the initial booking stage.
  • Total construction-period interest for a typical $1.5M new launch at 3.5% p.a. over 3 years amounts to approximately $55,000–$75,000 on top of the purchase price — a cost that is easy to overlook when focus is on the headline price.
  • Deferred Payment Schemes (DPS) offered by some developers eliminate interest during construction but typically command a 2–3% higher purchase price — this calculator helps you evaluate whether deferral is genuinely cost-effective.

What It Does

Visualise the progressive payment schedule for new launch condos. See exactly when each payment is due — from booking fee to CSC — and calculate the total interest cost during construction. Essential for cash flow planning.

You can find this calculator in the Calculators tab on ShiokNest. It updates results instantly as you adjust inputs — no waiting, no page reloads.

Why It Matters

Buying a new launch condominium in Singapore means committing to a property that may not be habitable for 3–5 years. Unlike resale purchases where your full loan repayments begin immediately and are predictable, the Progressive Payment Scheme ties your loan drawdown schedule to 8 construction milestones — each certified by a licensed architect before the developer can call for the next payment. For a $1.5 million purchase with a 75% loan, this means your outstanding loan balance grows from zero to $1.125 million over approximately 36–48 months, with interest charged only on the amount drawn at each stage. The practical result is that your monthly financial obligation doubles or triples between booking and TOP, a cash flow step-change that requires careful planning.

The single most important number this calculator reveals is your total construction-period interest — the cumulative cost you pay while the development is being built and before you can move in or rent out the unit. For a $1.5M purchase at 75% LTV and 3.5% p.a. interest over a 36-month construction period, this figure typically lands between $55,000 and $75,000 depending on how quickly the developer calls each tranche. This is money that generates no return: you are not living in the property, not earning rent, and not building equity through principal repayment. It is pure carry cost, and it needs to be factored into your total acquisition cost alongside stamp duty and legal fees.

The most common mistake new launch buyers make is anchoring on the interest-only monthly payments in the early construction stages. When the foundation tranche is drawn (10% of loan = ~$112,500), your monthly interest is only about $328/month — seemingly trivial. By the time the reinforced concrete framework is complete and Partition Walls certified (cumulative drawdown 35% = ~$394,000), monthly interest has grown to roughly $1,148. At TOP (cumulative 85% = ~$956,000), you transition to full monthly repayments of $4,000–$5,500 — a 5–10x increase from where you started. Buyers who did not model this step-up often find themselves stretching their monthly budget significantly at exactly the moment they also face renovation costs and moving expenses.

Run this calculator alongside the New Launch vs Resale Calculator to understand whether the total cost of the progressive scheme makes the new launch financially worthwhile versus an equivalent resale. For a holistic view of your financing capacity at TOP, use the Affordability Calculator to confirm your income and TDSR can absorb the full monthly repayment before you exercise the OTP.

How It Works

  • Navigate to Calculators — Click the "Calculators" tab in the ShiokNest navigation bar. All 47 calculators are grouped by purpose for easy access.
  • Select the calculator — Choose "How to Understand Progressive Payment Schedules" from the calculator list. You will see default values already loaded so you can explore immediately.
  • ️ Enter your values — Replace the defaults with your own numbers. The key fields are:
  • Review the results — The calculator updates instantly as you change any input. Key results are displayed in KPI cards and charts that update as you adjust inputs.
  • Run what-if scenarios — This is where the real power lies. Change one variable at a time to see its impact. For example, try increasing the interest rate by 1% or extending your holding period by 5 years. Note how the results shift.
  • Compare and decide — Run 2-3 different scenarios and note the results. This gives you a range of outcomes to base your decision on, rather than relying on a single projection.

Examples

$1.5M RCR New Launch — 3-Year Construction

Inputs
Purchase Price
$1,500,000
Loan Amount
$1,125,000 (75% LTV)
Interest Rate
3.5% p.a.
Launch Date
Jan 2025
Expected TOP Date
Jan 2028 (36 months)
Results
Total Before TOP (Cash + CPF)
$585,750 (incl. 20% downpayment + tranche milestones)
Total Construction Interest
$62,400 (estimated over 36 months)
Monthly at TOP (P+I)
~$5,050/month
Loan Drawdown at TOP
$956,250 (85% of loan)

How to read this: For a $1.5M purchase, the 36-month progressive schedule requires the buyer to have sufficient cash and CPF reserves to meet 8 milestone payments before TOP. The total construction-period interest of $62,400 is paid progressively as each tranche is drawn — starting at roughly $328/month (foundation stage) and climbing to $2,778/month by the time the Certificate of Statutory Completion stage is called just before TOP. At TOP, the buyer transitions to full principal + interest repayments of ~$...

$2.2M CCR New Launch — 4-Year Construction

Inputs
Purchase Price
$2,200,000
Loan Amount
$1,540,000 (70% LTV — ABSD second property)
Interest Rate
3.75% p.a.
Launch Date
Mar 2024
Expected TOP Date
Mar 2028 (48 months)
Results
Total Before TOP (Cash + CPF)
$990,000 (incl. 30% downpayment + milestones)
Total Construction Interest
$114,800 (estimated over 48 months)
Monthly at TOP (P+I)
~$7,100/month
Loan Drawdown at TOP
$1,309,000 (85% of loan)

How to read this: For a second-property buyer in the CCR at 70% LTV, the 4-year progressive schedule demands $990,000 in total upfront and tranche payments before TOP — a significant liquidity requirement. The 48-month construction period means construction interest exceeds $114,000, almost double the 36-month scenario in Example 1 despite similar interest rates, purely because of the longer timeline. The monthly step-up to $7,100 at TOP is equally significant: if the property is intended as an investment re...

Tips & Pitfalls

Expert Tips

  • Use realistic assumptions — Singapore condo appreciation has historically averaged 2-4% per year. Avoid overly optimistic projections. When in doubt, use 3% as a baseline.

Common Pitfalls

  • Not planning for the TOP balloon payment. The two largest tranches under PPS — 25% at TOP and 15% at legal completion — arrive in quick succession, often within 3–6 months of each other. Together they represent 40% of the total purchase price (or 53% of a 75% loan). Buyers who have been managing small interest-only payments during construction are often caught underprepared for the sudden step-up in both the loan drawdown and monthly repayment obligations. Calculate the...
  • Assuming your current bank package rate applies throughout construction. Most new launch buyers secure a Loan-in-Principle (LIP) which is valid for 30 days. Your actual bank loan is formalised at the point of legal completion (last tranche), not at booking. Interest rates can change significantly over 3–4 years of construction. If you locked in at 2.5% in 2021 but rates moved to 3.75% by 2024, your actual construction-period interest and full monthly repayments will be mate...
  • Confusing PPS interest with the Deferred Payment Scheme. Under the standard PPS, interest accrues on each drawn tranche from the drawdown date — there is no deferred interest. Some developers offer a Deferred Payment Scheme (DPS) where no interest is charged during construction, but the purchase price is typically 2–3% higher. Buyers sometimes compare a DPS price ($1.54M) to a standard PPS price ($1.5M) and conclude the DPS is more expensive — ignoring that PPS will acc...

Frequently Asked Questions

Is my data saved?
No. All calculations run entirely in your browser. No data is sent to any server, stored in a database, or shared with third parties. When you close or refresh the tab, your inputs are gone.
What are the 8 stages in the Progressive Payment Scheme?
The standard PPS milestones and their percentage of purchase price are: (1) Booking — 5% cash; (2) Agreement for Sale — 15% (of which 5% is your downpayment balance, rest from loan); (3) Foundation — 10%; (4) Reinforced Concrete Framework — 10%; (5) Partition Walls — 5%; (6) Roof — 5%; (7) Electrical Wiring, Plumbing & Gas — 5%; (8) Certificate of Statutory Completion (CSC) — 25%; (9) Temporary Occupation Permit (TOP) — 25%; (10) Completion — 15%. Exact stage names and per...
When does my bank loan repayment start?
Under a standard bank mortgage for a new launch, interest-only payments begin as soon as the first loan tranche is drawn (typically at the Foundation or Reinforced Concrete stage). Full principal + interest repayments begin after the legal completion stage (the final tranche). Some buyers arrange a fixed-rate mortgage that converts to P+I at a specific date — confirm the drawdown trigger dates with your bank well before construction milestones are called.
Can I use CPF for progressive payments?
Yes. CPF Ordinary Account (OA) funds can be used to service mortgage repayments on private properties including new launches, subject to the CPF withdrawal limits (Valuation Limit and Withdrawal Limit rules). Each progressive payment tranche — to the extent it comes from the loan — can be serviced by CPF. The 5% booking fee must be paid in cash. Confirm your CPF balance and applicable limits with your CPF statement or the CPF Board's online calculator before committing.
What if the developer misses the TOP date?
If a developer fails to obtain TOP by the date specified in the Sales & Purchase Agreement, they are liable to pay late interest to buyers — typically at 10–12% per annum on amounts already paid, compounded monthly. However, this interest is often significantly less than your own carrying cost (loan interest + foregone rent), and claiming it requires formal correspondence through a property solicitor. Construction delays of 6–18 months are not uncommon; always model a 12-month delay sce...

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Disclaimer: Figures shown are estimates for planning purposes only. Rates, rules, and grant quanta change frequently — verify with your bank, HDB, or a licensed financial advisor before acting.