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Car Loan Calculator (Malaysia)
Hire-purchase maths the way banks quote it — then the number they wish you checked: the effective interest rate. Instalment, total interest and all-in cost in seconds.
Monthly instalment
RM 1,333.93
Loan amount
RM 90,000.00
Down payment
RM 10,000.00
Total interest
RM 22,050.00
Total bank payment
RM 112,050.00
All-in cost
RM 122,050.00
The number banks wish you checked
Effective (reducing-balance) rate: 6.64% p.a. — the real cost of this loan. Flat-rate instalments are calculated on the FULL principal for the WHOLE tenure, so the effective rate always ends up well above the advertised flat rate.
How hire purchase works here
- • Flat rate: interest = principal × rate × years, charged up front on the full amount.
- • Rule of thumb: a 3.5% flat loan costs about as much as a ~6.5% reducing-balance loan.
- • Insurance, road tax and (for used cars) inspection are usually NOT in these figures — budget them separately.
- • Early settlement: banks treat it differently to a flat-rate home loan — ask for the settlement figure in writing.
Good to know
- Banks advertise the FLAT rate. Interest is charged on the full principal for the whole tenure, so the real (effective, reducing-balance) rate is always much higher — the tool shows both.
- Rule of thumb: effective ≈ flat × 1.8. A 3.5% flat loan is roughly a 6.4–6.5% effective loan.
- Not included: insurance, road tax, and for used cars the inspection and transfer costs — budget those on top.
- Early settlement figures come from the bank, not this page — ask for the written redemption amount before paying off.