Car Loan Calculator Malaysia
A RM100,000 car with 10% down payment (a RM 90,000 loan) at 4.50% EIR over 9 years costs RM 1,014.98 a month, with RM 19,618 total interest. Since 1 June 2026, new hire purchase loans use the reducing-balance method and quote an EIR instead of a flat rate. Enter your own figures below.
Your instalment
Monthly instalment
Loan RM 90,000 over 9 years · Equal to a 2.42% flat rate
| Down payment | RM 10,000 |
|---|---|
| Total interest | RM 19,618 |
| Effective interest rate (EIR) | 4.50% |
| Flat rate equivalent | 2.42% |
| Total repaid | RM 109,618 |
Excludes insurance, road tax and the RM10 stamp duty on the agreement.
Yearly repayment schedule
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | RM 8,300 | RM 3,880 | RM 81,700 |
| 2 | RM 8,681 | RM 3,499 | RM 73,020 |
| 3 | RM 9,080 | RM 3,100 | RM 63,940 |
| 4 | RM 9,497 | RM 2,683 | RM 54,443 |
| 5 | RM 9,933 | RM 2,247 | RM 44,510 |
| 6 | RM 10,389 | RM 1,790 | RM 34,121 |
| 7 | RM 10,867 | RM 1,313 | RM 23,254 |
| 8 | RM 11,366 | RM 814 | RM 11,888 |
| 9 | RM 11,888 | RM 292 | RM 0 |
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New hire purchase rules from 1 June 2026
The Hire-Purchase (Amendment) Act took effect on 1 June 2026. Banks have until 31 March 2027 to update their systems.
- Reducing balance: interest is charged only on what you still owe, so it falls as you repay.
- EIR disclosure: offers must show the effective interest rate, which is directly comparable between banks.
- No more Rule of 78: settling early returns all the interest you have not yet been charged.
- Existing loans: flat-rate agreements signed earlier keep their terms; banks are offering goodwill discounts to settle them early.
Car loan instalment table at 4.50% EIR
| Loan amount | 5 years | 7 years | 9 years |
|---|---|---|---|
| RM 30,000 | RM 559.29 | RM 417.00 | RM 338.33 |
| RM 50,000 | RM 932.15 | RM 695.01 | RM 563.88 |
| RM 70,000 | RM 1,305.01 | RM 973.01 | RM 789.43 |
| RM 90,000 | RM 1,677.87 | RM 1,251.01 | RM 1,014.98 |
| RM 120,000 | RM 2,237.16 | RM 1,668.02 | RM 1,353.31 |
| RM 150,000 | RM 2,796.45 | RM 2,085.02 | RM 1,691.64 |
A shorter tenure raises the instalment but cuts interest: on RM90,000, 7 years instead of 9 saves about RM4,533.
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Flat rate to EIR conversion
The EIR is the reducing-balance rate that gives the same instalment as a flat rate. Because a flat rate charges interest on the full loan for the whole term, the EIR is close to double.
| Flat rate | EIR, 5 years | EIR, 7 years | EIR, 9 years |
|---|---|---|---|
| 2.00% | 3.82% | 3.79% | 3.75% |
| 2.50% | 4.73% | 4.69% | 4.64% |
| 3.00% | 5.64% | 5.57% | 5.50% |
| 3.50% | 6.54% | 6.44% | 6.34% |
| 4.00% | 7.42% | 7.30% | 7.17% |
How flat-rate car loans and the Rule of 78 work
For agreements still on a flat rate: interest = loan × rate × years and instalment = (loan + interest) ÷ months. RM90,000 at 2.50% flat for 9 years costs RM 1,020.83 a month and carries RM 20,250 interest, equal to 4.64% EIR.
When you settle early, the Rule of 78 rebate is total interest × k(k + 1) ÷ n(n + 1), where k is the months left and n the total months. Settling that loan after 4 years costs RM 54,954, saving RM 6,296 of the remaining instalments but RM 375 more than reducing balance would.
Sources
- The Edge Malaysia: Rule of 78 scrapped
- ABM: hire purchase changes and early settlement discounts
- Business Today: new hire purchase rules for car buyers
- Baker McKenzie: amendments to the Hire-Purchase Act
Disclaimer: These are estimates, not a loan offer or financial advice. Your bank's offer letter and settlement statement decide the actual figures.
Frequently asked questions
How much is the monthly instalment for a RM100,000 car?
With a 10% down payment the loan is RM90,000. At 4.50% EIR over 9 years the instalment is RM1,014.98 a month, with RM19,618 total interest. Over 7 years it is RM1,251.01 a month and saves about RM4,533 in interest.
What changed for car loans in 2026?
The Hire-Purchase (Amendment) Act took effect on 1 June 2026. New car loans must use the reducing-balance method and show an effective interest rate (EIR), and the flat rate and Rule of 78 are abolished. Banks have until 31 March 2027 to move their systems, so check which method your agreement uses.
How do I convert a flat rate to EIR?
Find the EIR that gives the same monthly instalment as the flat rate. A 2.50% flat rate over 9 years equals about 4.64% EIR, over 7 years about 4.69% and over 5 years about 4.73%. As a rough guide, EIR is a little under twice the flat rate.
How is a flat-rate car loan instalment calculated?
Interest = loan × flat rate × years, then instalment = (loan + interest) ÷ months. For RM90,000 at 2.50% for 9 years: interest RM20,250, instalment RM110,250 ÷ 108 = RM1,020.83.
What is the Rule of 78?
It is the method older flat-rate agreements use to work out the interest rebate when you settle early. It assigns more interest to the early months, so you get back less than under reducing balance. On a RM90,000, 9-year loan at 2.50% flat, settling after 4 years costs about RM375 more than it would under reducing balance.
How much do I pay to settle my car loan early?
Under reducing balance you pay the principal still owed. Under a flat-rate agreement you pay the remaining instalments minus the Rule of 78 rebate. Banks are also offering goodwill discounts on early settlement of eligible Rule of 78 loans, so ask your bank for a settlement letter.
What is the maximum car loan tenure and margin of financing?
Most banks finance up to 90% of the price for up to 9 years. Used and recond cars often get a lower margin and a shorter tenure, depending on the car's age.
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