Calculator

Malaysia Car Loan Calculator

Enter your loan below — monthly installment, EIR, and early-settlement savings, all on one page.

Your loan

Car price

Down payment

Enter a percentage or a ringgit amount. Typically 10% — up to 90% financing allowed.

Loan tenure

years

Maximum 9 years for hire purchase in Malaysia.Flat interest rate

% p.a.

Banks quote a flat rate; the equivalent EIR is shown in your result.

Pay extra or settle early

— optional, skip if not needed

A one-off lump-sum payment shortens your loan. Your monthly installment stays the same. Leave the amount blank to skip.

Extra amount

At month #

That's year 1, month 12 of the loan.

Your result

Loan type

Pre-2026 method — interest is front-loaded on the original amount, so early settlement saves less.

Monthly installment

RM1,273.93

Total interest: RM 17,010.00
Total payable: RM 107,010.00
Flat rate: 2.70%
≈ EIR: 5.04%

Month-by-month

How each installment splits between interest and principal.

InterestPrincipal

Show full schedule

Month	Interest	Principal	Balance
1	RM 400.24	RM 873.69	RM 89,126.31
2	RM 395.47	RM 878.46	RM 88,247.85
3	RM 390.71	RM 883.22	RM 87,364.63
4	RM 385.94	RM 887.99	RM 86,476.64
5	RM 381.18	RM 892.75	RM 85,583.89
6	RM 376.41	RM 897.52	RM 84,686.37
7	RM 371.65	RM 902.28	RM 83,784.09
8	RM 366.88	RM 907.05	RM 82,877.04
9	RM 362.12	RM 911.81	RM 81,965.23
10	RM 357.35	RM 916.58	RM 81,048.66
11	RM 352.59	RM 921.34	RM 80,127.32
12	RM 347.82	RM 926.11	RM 79,201.21
13	RM 343.06	RM 930.87	RM 78,270.34
14	RM 338.29	RM 935.63	RM 77,334.71
15	RM 333.53	RM 940.40	RM 76,394.31
16	RM 328.76	RM 945.16	RM 75,449.14
17	RM 324.00	RM 949.93	RM 74,499.21
18	RM 319.24	RM 954.69	RM 73,544.52
19	RM 314.47	RM 959.46	RM 72,585.06
20	RM 309.71	RM 964.22	RM 71,620.84
21	RM 304.94	RM 968.99	RM 70,651.85
22	RM 300.18	RM 973.75	RM 69,678.10
23	RM 295.41	RM 978.52	RM 68,699.58
24	RM 290.65	RM 983.28	RM 67,716.30
25	RM 285.88	RM 988.05	RM 66,728.26
26	RM 281.12	RM 992.81	RM 65,735.45
27	RM 276.35	RM 997.58	RM 64,737.87
28	RM 271.59	RM 1,002.34	RM 63,735.53
29	RM 266.82	RM 1,007.11	RM 62,728.42
30	RM 262.06	RM 1,011.87	RM 61,716.55
31	RM 257.29	RM 1,016.63	RM 60,699.92
32	RM 252.53	RM 1,021.40	RM 59,678.52
33	RM 247.76	RM 1,026.16	RM 58,652.36
34	RM 243.00	RM 1,030.93	RM 57,621.43
35	RM 238.24	RM 1,035.69	RM 56,585.74
36	RM 233.47	RM 1,040.46	RM 55,545.28
37	RM 228.71	RM 1,045.22	RM 54,500.05
38	RM 223.94	RM 1,049.99	RM 53,450.07
39	RM 219.18	RM 1,054.75	RM 52,395.32
40	RM 214.41	RM 1,059.52	RM 51,335.80
41	RM 209.65	RM 1,064.28	RM 50,271.52
42	RM 204.88	RM 1,069.05	RM 49,202.47
43	RM 200.12	RM 1,073.81	RM 48,128.66
44	RM 195.35	RM 1,078.58	RM 47,050.08
45	RM 190.59	RM 1,083.34	RM 45,966.74
46	RM 185.82	RM 1,088.11	RM 44,878.64
47	RM 181.06	RM 1,092.87	RM 43,785.77
48	RM 176.29	RM 1,097.63	RM 42,688.13
49	RM 171.53	RM 1,102.40	RM 41,585.74
50	RM 166.76	RM 1,107.16	RM 40,478.57
51	RM 162.00	RM 1,111.93	RM 39,366.64
52	RM 157.24	RM 1,116.69	RM 38,249.95
53	RM 152.47	RM 1,121.46	RM 37,128.49
54	RM 147.71	RM 1,126.22	RM 36,002.27
55	RM 142.94	RM 1,130.99	RM 34,871.28
56	RM 138.18	RM 1,135.75	RM 33,735.53
57	RM 133.41	RM 1,140.52	RM 32,595.01
58	RM 128.65	RM 1,145.28	RM 31,449.73
59	RM 123.88	RM 1,150.05	RM 30,299.68
60	RM 119.12	RM 1,154.81	RM 29,144.87
61	RM 114.35	RM 1,159.58	RM 27,985.30
62	RM 109.59	RM 1,164.34	RM 26,820.96
63	RM 104.82	RM 1,169.11	RM 25,651.85
64	RM 100.06	RM 1,173.87	RM 24,477.98
65	RM 95.29	RM 1,178.63	RM 23,299.35
66	RM 90.53	RM 1,183.40	RM 22,115.95
67	RM 85.76	RM 1,188.16	RM 20,927.79
68	RM 81.00	RM 1,192.93	RM 19,734.86
69	RM 76.24	RM 1,197.69	RM 18,537.16
70	RM 71.47	RM 1,202.46	RM 17,334.71
71	RM 66.71	RM 1,207.22	RM 16,127.48
72	RM 61.94	RM 1,211.99	RM 14,915.50
73	RM 57.18	RM 1,216.75	RM 13,698.74
74	RM 52.41	RM 1,221.52	RM 12,477.23
75	RM 47.65	RM 1,226.28	RM 11,250.95
76	RM 42.88	RM 1,231.05	RM 10,019.90
77	RM 38.12	RM 1,235.81	RM 8,784.09
78	RM 33.35	RM 1,240.58	RM 7,543.51
79	RM 28.59	RM 1,245.34	RM 6,298.17
80	RM 23.82	RM 1,250.11	RM 5,048.07
81	RM 19.06	RM 1,254.87	RM 3,793.20
82	RM 14.29	RM 1,259.63	RM 2,533.56
83	RM 9.53	RM 1,264.40	RM 1,269.16
84	RM 4.76	RM 1,269.16	RM 0.00

How it works

Most car loans in Malaysia are hire-purchase loans — the bank owns the car until you finish paying. Banks quote a flat rate: a fixed percentage of the original amount, charged every year. That sounds small, but the true cost is the EIR — a 3% flat rate over 9 years is around 5.5% EIR. From 2026, banks must show both numbers up front.

Rule of 78 vs Reducing Balance

	Rule of 78	Reducing Balance
Interest calculated on	Original principal	Outstanding balance
Front-loaded interest	Yes (heavy)	No
Total interest if kept to full tenure	Same	Same
Fair on early settlement	No	Yes
Applies to	Loans before 1 Jun 2026	Loans from 1 Jun 2026

Loans signed before 1 June 2026 stay under Rule of 78; banks have until 31 March 2027 to migrate.

Questions, answered

What is the Rule of 78 in Malaysia car loans?

Rule of 78 is a method banks use to allocate interest across a hire-purchase loan. It front-loads interest: more of your early installments goes to interest, less to principal. If you settle early, you save less interest than you would expect.

What is Reducing Balance and what changes on 1 June 2026?

From 1 June 2026, Malaysia's Hire Purchase Amendment Act 2026 requires banks to calculate interest on your outstanding balance each month instead of the original principal. As you pay down the loan, your interest portion shrinks — which makes early settlement materially fairer. The Act also lets HP agreements be signed digitally.

What is EIR (Effective Interest Rate)?

EIR is the true annualized cost of a loan, calculated on the reducing balance. A 3% flat rate over 9 years works out to roughly 5.5% EIR. From 2026, banks must disclose EIR upfront so you can compare offers apples-to-apples. EIR caps sit around 16–17% for most car loans.

Can I settle my car loan early in Malaysia?

Yes. Under the new Reducing Balance method, the outstanding balance is calculated transparently and early settlement is fair. For pre-2026 loans still under Rule of 78, some banks offer a 'goodwill discount' if your loan is in good standing — ask your bank.

Does this calculator apply to my existing loan?

If you signed your hire-purchase agreement before 1 June 2026, the old Rule of 78 method still applies to your existing loan. Banks have until 31 March 2027 to migrate fully. Use the Old loan type to model your existing loan, and New for any new loan you are comparing.