Car loan repayment calculator Malaysia (hire purchase 2026)
KiraBoss Editorial· Last reviewed 2026-01-01· 1 min read
Malaysian car loans are governed by the Hire-Purchase Act 1967 and quoted at flat rate. Interest is calculated once on the full loan and spread evenly across the tenure.
Formula
- Loan Amount = Price − Downpayment − Trade-in
- Total Interest = Loan × Flat Rate × Years
- Monthly Instalment = (Loan + Total Interest) / (Years × 12)
Worked example
Vehicle: RM100,000 | 10% downpayment | 3.0% flat | 7 years - Loan = RM90,000 - Total interest = RM18,900 - Monthly instalment = RM1,296 - Effective reducing-balance rate ≈ 5.6%
Affordability
Keep car instalments under 15% of monthly gross. The Hire Purchase Calculator shows both flat-rate and effective-rate views, plus a downpayment slider.