Housing loan repayment calculator Malaysia 2026

Housing loans in Malaysia are reducing-balance with monthly rests. Your instalment is fixed (for variable-rate loans, it resets when BLR/BR changes), but the split between principal and interest shifts over time.

Worked example

Loan: RM500,000 | Rate: 4.30% p.a. | Tenure: 30 years - Monthly instalment ≈ RM2,474 - Total interest over 30 years ≈ RM390,800 - Total paid back ≈ RM890,800

A 25-year tenure saves ~RM75k in interest but raises the instalment to ~RM2,720.

How the instalment is calculated

Banks use the standard annuity formula: Instalment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the annual rate ÷ 12 and n is the number of months.

In the first month of the RM500,000 example, about RM1,792 of the RM2,474 instalment is interest (RM500,000 × 4.30% ÷ 12) and only about RM683 reduces the principal. That split slowly reverses over the tenure.

How much the rate matters

Same RM500,000 loan over 30 years:

• 3.80% → about RM2,330 a month, RM338,700 total interest
• 4.30% → about RM2,474 a month, RM390,800 total interest
• 4.80% → about RM2,623 a month, RM444,400 total interest

A 0.5% difference changes the instalment by roughly RM145–RM150 a month and total interest by over RM50,000, so it pays to compare offers.

DSR and affordability

Banks size your maximum loan against Debt Service Ratio. There is no single BNM DSR limit. Each bank applies its own internal DSR policy, so the maximum loan you are offered can differ between banks.

For example, with net income of RM8,000 and existing commitments of RM1,000 a month, adding a RM2,474 housing instalment gives a DSR of about 43% (RM3,474 ÷ RM8,000).

Common mistakes

• Comparing only the instalment, not total interest over the tenure.
• Forgetting legal fees, stamp duty, valuation and MRTA/MLTA, which may be added to the loan or paid upfront.
• Assuming the rate stays fixed. Most Malaysian home loans are floating and move with the bank's reference rate.

Stress test

Before committing, check whether you could still afford the instalment if your rate went up by 1%–2%. At 6.30% (2% higher), the same loan would cost about RM3,095 a month. The Housing Loan Calculator includes affordability, stress-test and pay-faster tabs so you can see the full picture before signing.