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  3. /Guide to Home Loan Calculations in Malaysia

Guide to Home Loan Calculations in Malaysia

Home loans in Malaysia typically use a reducing balance (amortising) formula. Interest is calculated on the outstanding principal, so your interest portion decreases over time.

Reducing Balance Formula

  • Monthly rate = Annual rate / 12
  • Number of payments = Years x 12
  • Monthly payment = Principal x Monthly rate x (1 + Monthly rate)^N / ((1 + Monthly rate)^N - 1)

Example

Loan amount RM450,000, annual interest 4.2%, 35 years. Monthly payment is approximately RM2,047.

Related Calculators

Home Loan Calculator Malaysia→

This guide is for informational purposes only. KiraSmart is not financial, tax, or professional advice. Please verify with official sources.

Last reviewed: 2026-07-17