Independent calculator — we don't sell loans, just the math. Why this matters →
All calculators →
Vehicle finance · Malaysia 2026

Car loan made simple.

Calculate your monthly installment using Malaysia's flat-rate method — the way banks here actually do it. Live results, no signup, no wrong answers.

Rates current · 2026 Source: Bank Negara ↗ Last verified · May 2026

Loan details

Adjust the values to match your loan offer.

RM
%
⏳
Monthly installment
RM1,179
over 84 months · flat rate
Principal Interest
Loan principalRM 80,000.00
Total interestRM 19,040.00
Total repaymentRM 99,040.00
Effective rate (APR)~6.32%
Show the formula
Flat rate (Malaysia standard):
Total Interest = Principal × Rate × Years
Monthly = (Principal + Total Interest) ÷ (Years × 12)

Reducing balance:
Monthly = P × i ÷ (1 − (1 + i)−n)
  where i = rate ÷ 12, n = months
Bank Negara Malaysia · Hire-Purchase Act ↗
Ad Slot — 728×90 leaderboard Replace this div with your AdSense unit code.

How Malaysian car loans really work

Most car loans in Malaysia are calculated using the flat rate (also called fixed rate) method. This is different from how housing loans work, and it's the single biggest source of confusion when people compare offers.

With flat rate, interest is calculated once on the full loan amount and then divided across every month of the loan. You pay the same amount of principal and interest in every installment — even though, after a few years, you've already paid back a chunk of the loan.

The formula

Malaysian flat-rate car loan Total Interest = Principal × Rate × Years
Total Repayment = Principal + Total Interest
Monthly Payment = Total Repayment ÷ (Years × 12)

A real example

Borrow RM 80,000 at 3.40% flat over 7 years:

Notice that 3.40% flat is not the same as 3.40% on a housing loan. The true effective rate is closer to 6.3% APR — almost double. Always compare car loan offers using the flat rate, never against home loan rates.

Sponsored · Affiliate

Compare car insurance before you buy

Once your loan is approved, you'll need comprehensive insurance. Comparing 5+ insurers can save you RM 300–800 a year on the same coverage.

Get free quotes →

Frequently asked questions

What is the maximum car loan tenure in Malaysia?
As of 2026, the maximum car loan tenure in Malaysia is 9 years for both new and used vehicles, regulated by Bank Negara Malaysia. Most banks default to 7-year tenures, which usually offer the best balance between monthly affordability and total interest paid.
How much down payment is required?
For new cars in Malaysia, the standard minimum is 10% of the on-the-road (OTR) price. For used cars and certain promotional packages, banks may offer 0% down payment, but this means you finance 100% of the price and pay more interest over time.
Can I settle my car loan early?
Yes, but because Malaysian car loans use flat rate, early settlement uses the Rule of 78. You won't get a proportional rebate of unpaid interest — banks recover more interest in early years. Always ask for a settlement quotation directly from the bank before deciding.
Flat rate vs reducing balance — which is better?
For the borrower, reducing balance is significantly cheaper because interest is calculated only on the outstanding amount. Unfortunately, almost all Malaysian car loans use flat rate — that's the market standard. Use this calculator's toggle to see how much you'd save under reducing balance, then negotiate accordingly.
What credit score do I need?
Malaysian banks check your CCRIS and CTOS records. There's no single minimum score, but a clean record with no late payments in the last 12 months and a debt-service ratio (DSR) under 60% is usually enough for approval at competitive rates.

Other Malaysian calculators

Income · LHDN

Tax Calculator 2026

Compute your annual tax based on the latest LHDN brackets.
Retirement

EPF Projection

How much you'll have in your KWSP account at retirement.
Property

Stamp Duty

SPA and loan agreement stamp duty for any property price.
Payroll

Take-Home Salary

Net pay after EPF, SOCSO, EIS, and PCB deductions.

This calculator is for estimation purposes only. Actual loan terms, interest rates, and approval criteria are determined by individual banks. Always confirm figures with your bank before making financial decisions. Not financial advice. See our methodology for the full formula.