Guide to Car Loan Calculations in Malaysia

Most car loans in Malaysia use a flat interest rate. This means interest is calculated on the original loan amount for the entire tenure.

Flat Interest Formula

• Loan amount = Car price - Down payment - Trade-in value
• Total interest = Loan amount x Annual flat rate x Tenure (years)
• Total repayment = Loan amount + Total interest
• Monthly payment = Total repayment / (Tenure x 12)

Example

Car price RM100,000, down payment RM10,000, flat rate 3.2%, 7 years. Loan amount = RM90,000. Total interest = RM20,160. Monthly payment = RM1,311.43.