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Malaysia Car Loan Calculator

TIPS: Do not use commas when quoting prices in RM.

Car purchase price (RM) :
Down-payment (RM) :
Nominal Interest rate (%) :
Loan Period(months) :

Monthly Installment (RM):

Nominal versus effective interest rate

The nominal interest rate is the periodic interest rate times the number of periods per year. For example, a nominal annual interest rate of 12% based on monthly compounding means a 1% interest rate per month (compounded).[2] A nominal interest rate for compounding periods less than a year is always lower than the equivalent rate with annual compounding. A nominal rate without the compounding frequency is not fully defined: for any interest rate, the effective interest rate cannot be specified without knowing the compounding frequency and the rate. Although some conventions are used where the compounding frequency is understood, consumers in particular may fail to understand the importance of knowing the effective rate.

Nominal interest rates are not comparable unless their compounding periods are the same; effective interest rates correct for this by “converting” nominal rates into annual compound interest. In many cases, depending on local regulations, interest rates as quoted by lenders and in advertisements are based on nominal, not effective interest rates, and hence may understate the interest rate compared to the equivalent effective annual rate.

The term should not be confused with simple interest (as opposed to compound interest). Simple interest is interest that is not compounded.

Via Wikipedia.

If you happen to have a Financial Calculator, you can easily use the following guide to determine your Effective Interest Rate:

For example, you borrowed RM58,000 for your new Toyota VIOS for 5 years, with a nominal interest rate of 3.00%. According to the repayment schedule issued by your bank, you are expected to pay RM1,112.00 monthly for the next 5 years (60 months).

(i) Loan Amount (PV) = 58,000
This value must be positive because you are actually getting RM58,000 from the bank into our pocket.

(ii) Monthly Installment (PMT) = -1,112
This value must be negative because you are going to pay out this amount out from our pocket.

(iii) Repayment period (n) = 60 months
We need to convert this repayment period of 5 years into 60 months because you are paying the installment is in monthly mode.

With the calculator, you just need to punch the numbers in the following order:

Step 1: 58000 PV
Step 2: 1112 (+/-) PMT
Step 3: 5 [Shift] [n]
Step 4: [Comp] [i%]

In this example, you should get a monthly interest rate of 0.47%. Hence, your Effective Interest Rate is 0.47% x 12 = 5.65%. Hence, the difference between the rate advertised by the bank is 5.65% – 3.00% = 2.65% (Oops!).

Other Useful Tools

To find out how much you will be paying for your road tax, check out Malaysia Road Tax Rate.

To calculate your vehicles insurance premium, use the Motor Insurance Premium Calculator.

To apply or renew your car insurance, head over to InsuranceOnline.my.


  1. Used car are always better to buy especially when you taking about bad credit car loans. They are more affordable but more importantly a new car losses 15 to 20 percent of its value from the time it leaves the car lot

    Comment by car man — June 4, 2008 @ 11:19 am

  2. there is alo t of car sell in malaysia di used car dealer kereta baru dan sebagainya.di website seperti http://www.cartrader.com.my pun ada

    Comment by cartrader — September 10, 2008 @ 11:47 pm

  3. Maybe you can check new car price and used car loan at http://kereta.info

    Comment by kereta — October 20, 2008 @ 12:38 am

  4. used cars do donate , you can help the people
    who need some charities providing help the people

    Comment by Car Donation — October 31, 2008 @ 6:11 pm

  5. Gerrally i too prefer used cars
    They are ecomomic and affordable

    Comment by Dream Car Blog — November 17, 2008 @ 10:08 am

  6. buying used cars can save us lots of money.

    Comment by neosheva — February 26, 2009 @ 10:55 pm

  7. what is the current interest rate for second hand car?

    Comment by Ravi — May 26, 2009 @ 8:21 am

  8. Car loan Calculator – http://www.etoolsage.com/Calculator/Car_Loan_Ca

    Comment by meilier — April 27, 2010 @ 5:06 am

  9. Great article! Very well put! Thank you!

    Comment by sleeprunner — June 8, 2010 @ 9:16 pm

  10. interest yg paling rendah utk bli new car bank ape?

    Comment by K_ribena — August 29, 2010 @ 12:48 am

  11. What is the difference between a Constitution refit class starship and a Sovereign class starship?
    What is the difference between the Constitution refit class starship from the Wrath of Khan, and the Sovereign class starship from First Contact. What is the difference between their weapons and shields? And whats the difference between their bridges? and how fast are they in Warp Speed? And how many hits can they take from a borg cube? and what would happen if both ships got into a battle?

    Comment by Sovereign Flexlock — September 12, 2010 @ 4:20 am

  12. new import car is between 2.98 – 3.5
    but new local car 3.5 – 3.9
    used car is between 4.0 – 4.65

    Comment by Abunasihah — September 28, 2010 @ 4:04 pm

  13. Great helpful article, I have been searching for this application, but can anyone tell me what is minimum interest rate.

    Comment by Bad Credit Mortgage — March 29, 2011 @ 7:08 am

  14. This article is very informative especially the Malaysia Car Loan Calculator is very helpful to all. Thanks for sharing all these information with all the useful tools.

    Comment by Used Car Japan — April 29, 2011 @ 6:40 am

  15. Yes it is one of the easiest tool to use for loan calculations…..i loved it….cheers!!!

    Comment by Prateek Panchal — May 9, 2011 @ 12:19 pm

  16. I like you article, there must be according to the consumer’s interest rate.

    Comment by Bad Credit — May 27, 2011 @ 12:56 pm

  17. NOTE YOU ARE TO GET BACK TO US VIA: ang_geck@yahoo.com.sg

      To send me an email today to apply for your LEGIT loan offer to 3% if it is entirely INTERESTED.contact us by ang_geck@yahoo.com.sg  Mr Acg Geck INC. Are tired of seeking loans and mortgages? Have you been refused by your bank? We give you a loan of $ 1,000.00 min. $50,000,000.00 Max. to 3% rate.We are certified trustworthy.You are required to apply by the following important details.


     * Applicant Full Names:……………
    * Applicant Contact Address:……….
    * Phone No:………………………
    * Country:……………………….
    * Age:…………………………..
    * Marital Status:…………………
    * Amount Required As Loan:…………
    * Proposed Terms/Duration Of Loan:….
    * Annual Income:………………….
    * Occupation:…………………….

    Thanks and God Bless.
    Regards,Mr.Acg Geck
    via e -mail: ang_geck@yahoo.com.sg
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    Comment by Ang geck — July 12, 2011 @ 2:06 pm

  18. I am Julie Kanh i was in need of a loan of S$300, 000 and was scammed by those fraudulent lenders and a friend introduce me to Mr Ang Geck.and he lend me the loan without any stress,you can contact him at ang_geck@yahoo.com.sg 

    Comment by Ang_geck — July 12, 2011 @ 2:08 pm

  19. I am Julie Kanh i was in need of a loan of S$300, 000 and was scammed by those fraudulent lenders and a friend introduce me to Mr Ang Geck.and he lend me the loan without any stress,you can contact him at ang_geck@yahoo.com.sg 

    Comment by Ang_geck — July 12, 2011 @ 2:09 pm

  20. Thanks for sharing, vehicle finance calculator really helps to those who wants to buy a car.

    Comment by vehicle finance calculator — November 29, 2011 @ 12:36 am

  21. Great..I have been searching for this application, but can anyone tell me what is minimum interest rate..Thanks!!
    Car Finance

    Comment by Anonymous — April 21, 2012 @ 12:44 pm

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