How is a car loan calculated in Malaysia?

Hire purchase uses a flat rate: total interest = loan amount × rate × years. Add it to the loan and divide by the number of months to get the instalment.

Debt service ratio: all your monthly commitments, including the new car, divided by your income. Many banks are comfortable below 60%.

What is the maximum tenure for a recond car?

Up to 9 years, depending on the bank and the age of the car.

Car loan calculator

Kira ansuran bulanan for any recond car, then check whether your salary is likely to qualify. Want the numbers explained? Read how much salary you need for a RM200k car loan.

Car price (RM)

Down payment (%)

Minimum 10% (RM 15,000)

Interest (% flat p.a.)

Tenure: 9 years

Estimated monthly instalment

RM 1,588

Loan amount: RM 135,000
Total interest: RM 36,450
Total payable: RM 171,450

Estimate only, using the Malaysian flat-rate hire purchase formula. Actual rates, tenure and approval depend on the bank and your credit profile.

Can I get this loan?

Gross monthly salary (RM)

Existing monthly commitments (RM)

Estimated DSR

Enter your salary to see it.

DSR = (existing commitments + this instalment) ÷ gross salary. Below 60% is usually fine, 60–70% is borderline.

Your name (optional)

Common questions

How is a car loan calculated in Malaysia?: Hire purchase uses a flat rate: total interest = loan amount × rate × years. Add it to the loan and divide by the number of months to get the instalment.
What is DSR?: Debt service ratio: all your monthly commitments, including the new car, divided by your income. Many banks are comfortable below 60%.
What is the maximum tenure for a recond car?: Up to 9 years, depending on the bank and the age of the car.