Calculate it yourself
New standard from 1 June 2026 (Hire Purchase Amendment Act 2026). Interest is charged only on the outstanding balance, so early settlement saves you more.
RM
RM
% p.a.
Reducing-balance rates are typically ~5–7% p.a.
Monthly instalment
RM 1,323.49
Amount financed
RM 108,000
Total interest
RM 34,937
Total payable
RM 142,937
Effective rate (EIR)
6.70% p.a.
Outstanding balance by year
Yr 1
RM 98,869
Yr 2
RM 89,127
Yr 3
RM 78,732
Yr 4
RM 67,642
Yr 5
RM 55,808
Yr 6
RM 43,182
Yr 7
RM 29,710
Yr 8
RM 15,337
Yr 9
RM 0
Under the reducing-balance method, interest falls as you pay down the balance. Lenders must now disclose the EIR so you can compare loans fairly. This estimate assumes a fixed rate — if your loan is on a variable (floating) rate, the instalment will change whenever the bank revises the rate.