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? Most hire-purchase quotations use a flat interest rate, so interest is calculated on the original loan principal for the whole tenure, not on the reducing balance. The formula is simple: 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. That is why a 3.5% flat rate is not the same as a 3.5% effective annual rate. A quick educational estimate is that the effective cost is roughly flat rate multiplied by 1.8, depending on tenure and repayment pattern. 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.
Q.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.