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Calculator · Malaysia 2026

Malaysia Home Loan Calculator

Enter your loan below — monthly installment, total interest, and a year-by-year amortization schedule. Simulate lump-sum or recurring extra payments to see how much you save.

Your loan

%
Typically 10% — up to 90% financing for 1st/2nd home in Malaysia.

Pay extra to finish earlier

Optional — skip if not needed

A one-off lump sum at a chosen month. Your monthly installment stays the same — you finish earlier. Leave the amount blank to skip.

month
That's year 5, month 12 of the loan.

Your result

Monthly installment

RM2,148.37
Total interest
RM 323,412.78
Total payable
RM 773,412.78
Loan amount
RM 450,000.00
Annual rate
4.00%

Year-by-year

Early years are interest-heavy; later years are principal-heavy. Click a year in the table for month detail.

InterestPrincipal
Show full schedule
Year / MonthInterestPrincipalBalance
RM 17,855.76RM 7,924.66RM 442,075.34
RM 17,532.90RM 8,247.53RM 433,827.81
RM 17,196.88RM 8,583.54RM 425,244.27
RM 16,847.18RM 8,933.25RM 416,311.01
RM 16,483.22RM 9,297.21RM 407,013.81
RM 16,104.44RM 9,675.99RM 397,337.82
RM 15,710.22RM 10,070.20RM 387,267.62
RM 15,299.95RM 10,480.48RM 376,787.14
RM 14,872.96RM 10,907.47RM 365,879.67
RM 14,428.57RM 11,351.86RM 354,527.82
RM 13,966.08RM 11,814.35RM 342,713.47
RM 13,484.74RM 12,295.68RM 330,417.79
RM 12,983.80RM 12,796.63RM 317,621.16
RM 12,462.44RM 13,317.98RM 304,303.18
RM 11,919.85RM 13,860.58RM 290,442.60
RM 11,355.15RM 14,425.28RM 276,017.32
RM 10,767.44RM 15,012.99RM 261,004.33
RM 10,155.79RM 15,624.64RM 245,379.69
RM 9,519.22RM 16,261.21RM 229,118.48
RM 8,856.71RM 16,923.72RM 212,194.76
RM 8,167.21RM 17,613.22RM 194,581.55
RM 7,449.62RM 18,330.81RM 176,250.74
RM 6,702.79RM 19,077.63RM 157,173.11
RM 5,925.54RM 19,854.88RM 137,318.23
RM 5,116.62RM 20,663.80RM 116,654.43
RM 4,274.75RM 21,505.68RM 95,148.75
RM 3,398.57RM 22,381.85RM 72,766.90
RM 2,486.70RM 23,293.72RM 49,473.18
RM 1,537.68RM 24,242.74RM 25,230.43
RM 549.99RM 25,230.43RM 0.00

How it works

Malaysian home loans use the reducing-balance method: each month, interest is charged on what you still owe — not on the original loan amount. Your installment stays fixed for the full tenure, but the split shifts over time: early months are interest-heavy, later months are principal-heavy.

Banks quote the rate as SBR + spread. SBR (Standardised Base Rate) moves with Bank Negara's Overnight Policy Rate; the spread is fixed for the life of your loan.

Why prepayment is so effective

Because interest is calculated on the reducing balance, any extra ringgit you put toward principal compounds in savings for the rest of the loan. A small recurring extra (RM 200–500/mo) on a 30-year mortgage typically shortens the tenure by years and saves tens of thousands in interest. Check whether your account is full-flexi (free, withdrawable) or semi-flexi (small fee per prepayment) before committing.

A worked example: RM 500,000 over 30 years at 4.10 %

Worked example & methodology

Plug these numbers into the calculator above to follow along. The arithmetic below is what a Malaysian bank's amortisation schedule actually does behind the scenes.

Loan amount RM 500,000, annual rate 4.10 %, tenure 30 years (360 months). The monthly rate r is 4.10 % ÷ 12 = 0.3417 %. Plug into the standard PMT formula: monthly installment ≈ RM 2,415.85. Multiply by 360 months and the total payable is roughly RM 869,706 — meaning RM 369,706 of interest over the full tenure, or 74 % of the original loan.

In month 1, interest is 500,000 × 0.3417 % ≈ RM 1,708.33. Principal repaid is 2,415.85 − 1,708.33 ≈ RM 707.52. Even though the installment is the same every month, only 29 % of month 1 goes toward actually paying down the loan. By month 180 (year 15) the split is roughly 50/50; by month 300 (year 25) more than 75 % of each installment goes to principal.

Now apply RM 500 of extra principal every month from month 1. The loan clears at month 285 — almost 6 years early — and total interest drops from RM 369,706 to about RM 280,500. That's RM 89,000 in saved interest in exchange for RM 142,500 of extra principal — a strong return on what is essentially a 'safe' use of cash flow.

Now try a single RM 50,000 lump sum at month 60 instead. The loan finishes at month 327 — almost 3 years earlier — and saves about RM 67,000 in interest. The earlier the lump-sum lands, the more compound savings it generates. The same RM 50,000 at month 240 saves only about RM 11,000.

Common mistakes to avoid

Even a small misconception can cost you RM 50,000+ over a 30-year mortgage. The most expensive ones we see:

  1. 01Picking the longest tenure to lower the installment

    A 35-year loan looks comfortable until you total the interest. The same RM 500k at 4.10 % costs about RM 369k of interest at 30 years but roughly RM 444k at 35 years — RM 75k more for five extra years of installments.

  2. 02Treating SBR + spread as fixed

    Only the spread is fixed. SBR moves with Bank Negara's OPR decisions and can climb 100 bps within a tightening cycle. Stress-test the installment at SBR +1 % and SBR +2 % before committing.

  3. 03Skipping prepayments because 'a few hundred won't matter'

    On a 30-year loan, RM 300 extra per month from year 1 typically saves RM 55,000+ in interest and clears the loan 3–4 years sooner. The compounding works strongly in your favour on long tenures.

  4. 04Confusing lock-in penalty with prepayment penalty

    Lock-in penalties apply only when you fully settle (refinance away or sell) within the first 3–5 years. Routine partial prepayments are almost always allowed during the lock-in.

  5. 05Financing MRTA on top of the property price

    Bundling an MRTA premium into the loan looks painless but you'll pay interest on that premium for the full tenure. A RM 10k MRTA financed at 4 % over 30 years actually costs roughly RM 17k in lifetime cash.

Questions, answered

11 items
How is my monthly installment calculated?

Malaysia home loans use the reducing-balance method. Each month, interest is charged on your outstanding balance, not the original loan amount. The installment is fixed for the whole tenure using the standard PMT formula: M = P · r · (1+r)^n / ((1+r)^n − 1), where P is the loan, r is the monthly rate (annual ÷ 12), and n is the number of months.

What is SBR and how does it affect my rate?

SBR (Standardised Base Rate) replaced BLR in August 2022. Banks quote home-loan rates as SBR + a spread (e.g., SBR 3.00% + 0.45% = 3.45% effective). SBR moves only when Bank Negara changes the Overnight Policy Rate, so it's more transparent than the old BLR system. Enter the effective rate from your offer letter into this calculator.

How much can I borrow?

Margin of Finance (MOF) caps how much you can borrow against the property price. For most buyers, MOF is up to 90% for your 1st and 2nd home, dropping to 70% for the 3rd and subsequent properties. The remainder is your down payment. Your debt-service ratio (DSR) and credit score also matter — banks typically want DSR under 60–70%.

Will paying extra each month really save me money?

Yes — significantly. Because interest is charged on the reducing balance, every extra ringgit of principal saves you compound interest for the rest of the loan. On a 30-year RM 500k loan at 4%, an extra RM 500/month can shorten the tenure by 6+ years and save over RM 100k in interest. The recurring-extra tab models this. Note: full-flexi accounts let you withdraw the extra, semi-flexi often charges a small fee per prepayment.

What's the maximum tenure?

Most Malaysian banks cap home-loan tenure at 35 years or until the borrower reaches age 70, whichever comes first. So a 40-year-old can typically take up to a 30-year loan. Longer tenure means lower installment but more total interest.

Does this work for Islamic financing?

Yes. Islamic home financing (Murabahah, Musyarakah Mutanaqisah, etc.) uses a profit rate instead of an interest rate, but the math at the customer's perspective is the same reducing-balance amortization. Enter the effective profit rate as the rate input and the results map directly.

What is a lock-in period and does it affect prepayment?

Most Malaysian home loans carry a 3- to 5-year lock-in: if you fully settle (refinance away or sell) during the lock-in, you pay a penalty of 2–3 % of the original loan. Partial prepayments are normally allowed during the lock-in without penalty on full-flexi accounts, and with a small per-prepayment fee on semi-flexi accounts. Always read the offer letter's lock-in clause before signing.

Full-flexi vs semi-flexi — what's the practical difference?

A full-flexi account pairs your loan with a linked current account; any surplus in that account reduces the principal on which interest is charged, and you can withdraw the surplus any time without fees. A semi-flexi account lets you prepay but normally charges RM 10–25 per top-up and a few days' processing to redraw. Full-flexi suits irregular income; semi-flexi suits people who simply pay extra each month and won't pull it back.

How does MRTA / MLTA insurance fit in?

MRTA (Mortgage Reducing Term Assurance) is a one-off premium that covers the loan balance if you die or are totally disabled — the cover reduces alongside your balance. MLTA (Mortgage Level Term Assurance) carries a fixed sum assured with a small cash value. Premiums are paid up-front and can be financed into the loan; doing so increases the effective interest you pay over the tenure. They are not legally required but most banks strongly encourage one.

What stamp duty applies to a Malaysian home loan?

Stamp duty on the loan agreement is 0.5 % of the loan amount, levied once on signing the facility agreement. The Sale & Purchase Agreement has its own ad valorem stamp duty on the transfer of ownership, scaled to property price. First-home buyers under the government's umbrella schemes have historically received partial or full exemption on both — check the latest LHDN-Stamp Office circulars or your lawyer for the year's exemption rules.

Why does my installment increase mid-tenure?

Floating-rate Malaysian home loans (SBR-pegged) reprice whenever Bank Negara moves the Overnight Policy Rate. If SBR rises by 0.25 %, your effective rate rises by 0.25 % and the bank typically keeps the tenure fixed and bumps the installment. The reverse happens when SBR falls. Re-run the calculator with the new rate to see the impact.

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