Financial Tools
🚗 Car Loan Calculator
Calculate your monthly car loan payments, total interest, and repayment schedule.
Loan Details
Real-time calculation
10.0%
0%100%
Years
1 year9 years
3.5%
0%10.0%
Loan Summary
Monthly Payment
Enter car price
PrincipalInterest
50.0%50.0%
Loan Amount
—
Down Payment
—
Total Interest—
Total Payment—
Loan Term—
Effective Interest Rate
—Enter car price and loan details to see your estimated payments
Car Loan Calculator FAQ
The nominal interest rate (flat rate) in Malaysia is calculated based on the original loan amount, while the effective interest rate (EIR) reflects the true cost of borrowing by accounting for the reducing loan balance, making EIR always higher.
There is no simple formula for calculating the effective interest rate; some sites inaccurately estimate it by simply doubling the flat rate. The correct calculation requires a numerical method, which is explained here.
Malaysian car loans use the Rule of 78 method, which is a declining balance method that allocates more interest to the early years of the loan. This means you pay more interest at the beginning and less towards the end. The formula is based on the sum of the digits of the loan term, which is why it's called the Rule of 78.
Early loan settlement in Malaysia can result in significant savings, but the Rule of 78 method means you'll still need to pay a substantial portion of the interest. The rebate calculation is based on the remaining months and the total interest. Generally, the earlier you settle, the less interest you'll pay, but the savings might be less than expected due to the front-loaded interest structure. Use the table above to see how much you can save by paying off your loan early.
Early Settlement Calculator
Early Settlement Calculator