Car Loan Calculator (Malaysia) — Monthly Repayment & Total Interest
Estimate your monthly car loan installment in Malaysia using the standard flat-rate (Hire Purchase) formula used by local banks.
- Loan principal
- RM 81,000.00
- Down payment
- RM 9,000.00
- Total interest
- RM 16,159.50
- Total repayment
- RM 97,159.50
- Effective annual rate
- 5.31%
- Solved from the amortization equation — what a reducing-balance loan would charge.
About this calculator
In Malaysia, most car loans are structured as Hire Purchase (HP) financing. Banks quote a flat interest rate — for example 2.85% per annum — on the original principal for the entire loan tenure. The total interest is therefore: principal × rate × years. The monthly installment is the sum of principal and total interest divided by the number of months. While flat rate looks lower than effective rate, the effective annual interest rate is roughly 1.85× the flat rate because you keep paying interest on the full principal even after part of it has been repaid. Down payment in Malaysia is usually 10% for new cars (90% margin of finance) and tenures range from 5 to 9 years. Always factor in road tax, insurance, and service costs on top of the installment.
Formula
Monthly = (Principal + Principal × Rate × Years) ÷ (Years × 12)
Example calculation
Example: RM90,000 Proton X50 with 10% down, 7-year loan @ 2.85%
Down payment is RM9,000, leaving an RM81,000 loan. Total interest = 81,000 × 2.85% × 7 = RM16,160. Total repayment = RM97,160. Divided over 84 months ≈ RM1,156/month.