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Last reviewed 2026-01-01 · verify with sourceOur methodology

Hire Purchase Calculator Malaysia

Calculate Malaysian hire purchase monthly instalment, total interest, total paid to bank and optional early settlement estimate with transparent HP logic.

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Inputs

Vehicle & financing
RM
RM
%
RM
RM
%
Affordability
RM
RM
Optional costs
RM
RM
RM
RM
RM
Early settlement (optional)
Monthly Instalment
RM 1,200.54
84 months · 7 yrs · flat 3.50%
A bit tight
Loan Amount
RM 81,000.00
Amount borrowed after deposit and trade-in
Total Interest Cost
RM 19,845.00
What you pay the bank over the loan period
Total Paid to Bank
RM 100,845.00
Loan amount + total interest cost
Upfront Payment
RM 9,000.00
Deposit and other fees paid at the start
Effective Rate
6.64%
Monthly Commitment
16.0%
Portion of your salary used for this instalment
Total Out-of-Pocket
RM 109,845.00
Upfront payment + bank instalments
Car Price
RM 90,000.00

Calculated using flat-rate hire purchase logic on the financed amount.

A bit tight· 16.0% of salary

This may still be manageable, but make sure you account for fuel, insurance, maintenance and emergencies.

This is a simple guide only, not a bank approval decision.

Your financing breakdown
Total paid to bank RM 100,845.00
Loan Amount
RM 81,000.00
80.3% of total paid to bank
Total Interest Cost
RM 19,845.00
19.7% — what the bank earns
Loan Amount vs Total Interest Cost
Upfront Payment Breakdown
  • DepositRM 9,000.00
  • Total Upfront PaymentRM 9,000.00
Flat Rate vs Effective Rate
Flat rate entered
3.50%
Approx. effective annual rate
6.64%

Effective rate is an approximation for comparison only. Your bank's disclosed effective rate may differ.

Formula
Amount Financed = Cash Price − Deposit − Trade-in
Term Charges = Amount Financed × Flat Rate × Tenure Years
Monthly Instalment = (Amount Financed + Term Charges) / Tenure Months
Total Amount Payable = Amount Financed + Term Charges + Option Fee + Documentation Fee
Total Upfront Cash = Deposit + Insurance + Road Tax + Documentation Fee + Other Upfront Cost
Effective Annual Rate ≈ (1 + Monthly IRR)^12 − 1
Assumptions
  • User-entered flat interest rate is used as-is.
  • Equal monthly instalments.
  • No late payment charges unless entered.
  • No insurance renewal unless entered.
  • Early settlement figure is an estimate only.
  • Bank statement and HP agreement override calculator result.
Source & reference
Needs verification
BNM Hire Purchase Consumer Guide 2026

Bank Negara Malaysia · Last reviewed 2026-01-01

Reference for Malaysian hire purchase computation, term charges, and early settlement guidance. Exact rebate formula and rounding must be verified against the published PDF before being treated as authoritative.

This calculator is for estimation and learning only. Final rates, fees and settlement amounts depend on your bank or financing provider.

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When this result may differ
  • Actual bank-approved rate differs.
  • Fees, insurance and road tax differ.
  • Rounding method differs.
  • Settlement date affects accrued charges.
  • Late charges or other penalties apply.
  • Bank uses a different rebate calculation.
  • HP agreement terms override defaults.
  • Bank's official settlement quotation is final.

Frequently asked

Related guides

How hire purchase works in Malaysia
Read guide →
What are term charges in hire purchase?
Read guide →
How to estimate early settlement for hire purchase
Read guide →

Found something wrong with this calculator?

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