Car Loan Calculator Malaysia
Calculate the real instalment — not just the flat rate that looks low. Complete with EIR, road tax, eligibility, and a bank comparison.
Flat-rate instalments are calculated like this: interest = amount financed × flat rate × years, then instalment = (amount financed + interest) ÷ number of months. Example: RM45,000 at 3.5% over 9 years = RM547.92 per month. From 1 June 2026, the Hire-Purchase (Amendment) Act 2026 abolishes the flat rate and the Rule of 78 for new agreements — interest now follows the reducing balance (EIR).
The flat rate looks low — EIR is your loan's true cost.
This site calculates instalments using the flat-rate formula and also computes the real effective interest rate (EIR) based on the reducing balance. All rates are indicative only — confirm the actual rate, margin and eligibility with your bank.
APPENDIX ACompare 8 banks' rates
Indicative flat rates (~2026-04-01) — confirm with the bank. Note: CIMB & Affin publish separate rates, and imported cars can sometimes be cheaper than national ones.
| Bank | New (flat) | Used |
|---|---|---|
| Maybank | dari 2.30% (promo) · 3.40–4.25% std | dari 2.70% (≤5thn) · 3.20% (6–10thn) |
| CIMBsplit | Nasional 3.75% · Import 2.70% · Recond 3.00% | Nasional 4.45% · Import 4.00% |
| Public Bank | dari 2.35% (promo) · 3.31% std | hingga 4.10% |
| RHB | 3.18% | — |
| Hong Leong | 3.24–3.78% | dalam julat sama |
| AmBank | dari 2.30% (promo) · Islamic 3.05–3.66% | 2.60–3.00% (≤5thn) |
| Affinsplit | Nasional 2.92% · Import 2.60% | dari 3.00% |
| Bank Rakyat | 3.05% (kadar untung, 5thn) | — |
APPENDIX BEarly settlement — the new 2026 method
From 1 June 2026, the Hire-Purchase (Amendment) Act 2026 abolishes the Rule of 78 and the flat rate for new agreements. Interest is now calculated on the reducing balance — the more you pay, the less interest, so early settlement is fairer.
For agreements signed before 1 June 2026, the original terms remain and your monthly instalment does not change. Banks offer a voluntary goodwill discount if you settle early.
⚠ We do not publish a new early-settlement rebate formula because no official source has issued one — the actual amount depends on your current outstanding principal. Confirm with an official settlement quote from your bank.
APPENDIX CTrue monthly cost (all-in)
No competitor shows the true cost of owning a car — not just the instalment. Estimate: instalment + road tax + insurance.
APPENDIX DEligibility — can you afford it? (DSR)
Guide: keep your DSR below 60%. Estimate only — not a guarantee of approval; banks assess your full CCRIS/CTOS.
Disclosure: Some links on this site may be affiliate links — we may earn a commission at no additional cost to you. This does not affect the rates or information shown, which remain indicative and should be confirmed with the bank.
Instalment by popular model
Estimated instalment at a 10% deposit, 3.5% flat rate, 7-year tenure. OTR prices are estimates — confirm with the dealer.
| Model | Price from | cc | Instalment/month | Road tax/year |
|---|---|---|---|---|
| Perodua Axia | RM 40,000 | 998 | RM 533.57 | RM 20 |
| Perodua Bezza | RM 38,000 | 998 | RM 506.89 | RM 20 |
| Perodua Myvi | RM 50,000 | 1329 | RM 666.96 | RM 70 |
| Perodua Ativa | RM 65,000 | 998 | RM 867.05 | RM 20 |
| Proton Saga | RM 35,000 | 1332 | RM 466.88 | RM 70 |
| Proton Persona | RM 48,000 | 1597 | RM 640.29 | RM 90 |
| Proton X50 | RM 86,000 | 1477 | RM 1,147.18 | RM 90 |
| Proton X70 | RM 100,000 | 1799 | RM 1,333.93 | RM 280 |
| Honda City | RM 86,000 | 1498 | RM 1,147.18 | RM 90 |
| Honda HR-V | RM 120,000 | 1498 | RM 1,600.71 | RM 90 |
| Toyota Vios | RM 90,000 | 1496 | RM 1,200.54 | RM 90 |
| Toyota Yaris | RM 88,000 | 1496 | RM 1,173.86 | RM 90 |
What people often ask
01 Is the Rule of 78 still used for car loans in Malaysia?
No. Since 1 June 2026, the Hire-Purchase (Amendment) Act 2026 abolishes the Rule of 78 and the flat rate for new agreements. New agreements now use the reducing balance method and the effective interest rate (EIR). Existing agreements signed before 1 June 2026 retain their original terms.
02 How do I calculate the monthly instalment for a car loan?
For a flat rate: interest = amount financed × flat rate × years, and instalment = (amount financed + interest) ÷ number of months. Example: RM45,000 at a 3.5% flat rate over 9 years = interest RM14,175, total RM59,175, divided by 108 months = RM547.92 per month. Our calculator also computes the real EIR for the true cost.
03 What is the maximum tenure for a car loan in Malaysia?
The maximum tenure for a car hire-purchase loan in Malaysia is 9 years (108 months). Typical tenures range from 5 to 9 years. A longer tenure lowers the monthly instalment but increases the total interest you pay.
04 What is the minimum deposit for a car loan?
The usual minimum deposit is 10% of the car price (financing margin up to 90% for new cars). There are 100%-margin promotions for selected national cars, while used cars are usually 80–90%. A higher deposit reduces the amount financed and the total interest.
05 What is the difference between the flat rate and the effective rate (EIR)?
The flat rate charges interest on the entire original principal for the whole tenure, so it looks low but understates the true cost. The EIR (effective rate) follows the reducing balance — interest only on the outstanding balance. A rough estimate is EIR ≈ 1.8 times the flat rate for a 9-year tenure (e.g. 3.5% flat ≈ 6.3% EIR); this ratio varies with tenure.
06 Will my existing loan instalment drop after the 2026 Act?
No. The new Act applies only to agreements signed on or after 1 June 2026. Your existing loan's monthly instalment does not change. What is offered to existing borrowers is a voluntary goodwill discount if you settle early — confirm this with your bank.
07 What DSR do I need to qualify for a car loan?
DSR (Debt Service Ratio) = total monthly debt commitments ÷ net monthly income × 100. As a guide, most banks set a limit of around 60–70% (up to 75–80% for government staff). Safe tip: keep your DSR below 60%. This is a guide only, not a guarantee of approval — banks assess your full credit profile (CCRIS/CTOS).
08 Why can the rate for imported cars be lower than for national cars?
So far only some banks (for example CIMB and Affin) publish separate flat rates for national vs imported cars. At those banks, imported/foreign cars sometimes show lower flat rates than national ones. This is specific to those banks — confirm the actual rate with your bank of choice, as most banks do not separate rates this way.
Official references
The facts, rates & rules on this page are based on the following official sources. Official information can change — always verify with the original source before deciding.