Car Loan Calculator

Determine your monthly repayments for your next vehicle. Our calculator uses the standard fixed-rate formula used by banks in Malaysia.

Loan Details

Vehicle Specifications

New

Annual Road Tax

RM 0

Annual Insurance (Est.)

RM 0

Total Cost of Ownership

Over 7 Years
Total Car Price (Incl. Interest)RM 8,000
Total Insurance & Road Tax (7 years)RM 0
Estimated Maintenance (RM150/mo)RM 12,600
Estimated Total SpentRM 0

Monthly Installment

RM 0

Monthly Installment

RM 0

standard car loan calculation

Total InterestRM 0
Total RepaymentRM 0
Total Ownership CostRM 0

Real Commitment

RM 0

Includes insurance & road tax provision

How Car Loan Interest is Calculated in Malaysia

In Malaysia, most car loans (Hire Purchase) use a Fixed Interest Rate. Unlike home loans where interest is calculated on a reducing balance, car loan interest is calculated based on the initial loan amount for the entire tenure.

Total Interest = Loan Amount × Interest Rate × Tenure (Years)
Monthly Installment = (Loan Amount + Total Interest) / (Tenure × 12)

This means the amount of interest you pay remains the same every month. It's important to negotiate for the lowest flat rate possible. Common rates in Malaysia range between 2.3% to 3.8% depending on the brand and model.