How to calculate car loan instalment in Malaysia
KiraBoss Editorial· Last reviewed 2026-01-01· 1 min read
Malaysian hire purchase uses a flat rate.
Loan Amount = Vehicle Price − Downpayment − Trade-in.
Total Interest = Loan Amount × Flat Rate × Years.
Monthly Instalment = (Loan Amount + Total Interest) / (Years × 12).
Keep your instalment below 15% of monthly salary as a healthy rule of thumb. Compute it with the Hire Purchase Calculator.