Car loan calculator Malaysia 2026
Convert car price, down payment, flat rate and tenure into monthly payment and total interest.
How is a car loan calculated in Malaysia? The Hire-Purchase (Amendment) Act 2026 took effect on 1 June 2026. During the transition period ending 31 March 2027, banks may still offer new hire-purchase financing using the Rule of 78, while some may already offer reducing-balance financing; confirm your lender's method. This calculator models only a hypothetical flat-rate case: loan amount equals car price minus down payment; total interest equals loan amount multiplied by annual flat rate multiplied by tenure; monthly instalment equals loan plus total interest divided by total months. A flat rate is not the same as an effective rate. The displayed effective rate converts this flat rate, over the tenure you choose, into the equivalent annual rate on a reducing balance; it is not a lender's quotation. This calculator shows the monthly payment, total interest, total payable and principal-versus-interest split so you can compare car prices before walking into a showroom. It is an estimate, not bank approval.
Calculator last updated 2 Oct 2026 · the flat rate is your input; the 3.5% default is illustrative, not a bank offer · ABM: hire-purchase changes
Open in AI Finance HubQ.What is a flat rate?
It calculates interest on the original loan principal for the full tenure.
Q.Why show effective rate?
It helps you compare flat-rate car loans with reducing-balance credit products.
Q.Can tenure exceed 9 years?
This Phase 1 calculator caps tenure at 9 years to match common hire-purchase planning.
For a side-by-side term example, compare five, seven and nine years of car-loan payments and total cost. It uses a hypothetical flat-rate contract; confirm the method in your own quotation. To work out a price you can afford first, read how much car loan you can afford in Malaysia, which starts from your DSR on net income.