Enter the property price, down payment, interest rate and tenure to calculate your monthly housing loan instalment.
Result
This result is an estimate only. Check with your bank or the relevant authority before making decisions.
How the instalment is calculated
Malaysian home loans use the reducing-balance method: each month’s interest is charged on the loan balance still outstanding. The fixed monthly instalment comes from the annuity formula:
Instalment = P × r ÷ (1 − (1 + r)⁻ⁿ)
where P is the loan amount, r the monthly interest rate (annual rate ÷ 12) and n the number of months.
Worked example
RM500,000 property, 10% down payment, 4% interest per year, 35-year tenure:
Down payment: RM50,000, so the loan is RM450,000
Monthly rate: 4% ÷ 12 = 0.333%; number of months: 420
Monthly instalment: RM1,992.49
Total repayment: RM836,844.26, including RM386,844.26 of interest
Why your number may differ
Banks may round the instalment, charge different rates for set periods, or finance insurance premiums into the loan. Floating rates can also change over the life of the loan.
Frequently asked questions
Does this include legal fees and stamp duty?
No. It calculates the loan instalment only. Legal fees, stamp duty and insurance (MRTA/MLTA) are extra and need to be budgeted separately.
Why is the total interest so high over 35 years?
With the reducing-balance method, interest is charged on the outstanding balance each month. A longer tenure lowers the monthly instalment but the balance falls more slowly, so total interest is higher.
My rate is floating. What should I do?
Most Malaysian home loans are floating-rate loans tied to the bank's base rate. Recalculate with the new rate whenever it changes to see the effect on your instalment.