Car Affordability Calculator
Enter your net income and the share of it you are willing to spend on a car instalment. You will get the maximum instalment, loan and car price.
This result is an estimate only. Check with your bank or the relevant authority before making decisions.
How it is calculated
- Maximum instalment = net income × share for the instalment
- Maximum loan = instalment × (1 − (1 + r)^−n) ÷ r, where r is the annual rate ÷ 12 and n is the number of months (at a 0% rate, loan = instalment × n)
- Maximum price = maximum loan ÷ (1 − down payment %)
The maximum car loan tenure is 9 years.
Worked example
Net income RM5,000, 15% for the instalment, 3% rate, 9 years, 10% down payment:
- Maximum instalment: RM5,000 × 15% = RM750
- Maximum loan (108 months): RM70,908.98
- Maximum price: RM70,908.98 ÷ 0.9 = RM78,787.75
Why your number may differ
The share of income is your own budget choice. Insurance, road tax, fuel and servicing are extra on top of this instalment.
Frequently asked questions
What share of income should go to a car instalment?
The share is your own budget choice. This calculator starts at 15%, which you can change.
Is the flat-rate method used?
No. Since the Hire-Purchase (Amendment) Act 2026, new car loans use reducing balance, and that is what is used here.
Are other costs included?
No. Insurance, road tax, fuel and servicing are extra on top of the instalment.