Number of installments | Outstanding Principal (RM) | Principal Component (RM) | Interest Component (RM) | Repayment (RM) |
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"Car Loan Calculator" Supplementary Information

The "Car Loan Calculator" is used to calculate monthly loan repayments, total loan interest expenses, loan charts, and more without the need for MS Excel (spreadsheet).

There are various types of loans available in the market, including personal loan, credit card loan, car loan, property loan and so on. Regardless of whether it is a personal loan, credit card loan, car loan, or property loan the most important factor is the annual interest rate. How can you calculate the monthly repayment amount for a car loan based on the annual interest rate? Detailed explanations will be provided below.

**Car Loan Calculations Based on Annual Interest Rate**

The formula for calculating car loans based on the annual interest rate is as follows:

- A is the monthly repayment amount (or Equated Monthly Installment [EMI for short])
- P is the loan amount (how much money you borrowed)
- r is the annual interest rate of the loan (%) divided by 12, as there are twelve months in a year
- n is the number of repayment months

If I borrowed a car loan of RM500,000 from a bank with an annual interest rate of 2.5% and a repayment period of 48 months, then my monthly repayment amount would be:

Car Loan borrowers should be careful not to assume that the principal amount repaid each month is the same! Regardless of whether the bank/financial institution uses the "straight-line method" or the "Rule of 78", the proportion of interest paid is higher at the beginning of the repayment. Therefore, if you choose to repay early, you need to pay attention to the remaining principal and any early repayment fees that may be incurred.

I will explain what the "Rule of 78" means.

The "Rule of 78" is derived as follows:

It is named after using a 12-month repayment period. How does 78 come about? Let's see follows:

That's it, the total interest for the entire period is divided into 78 parts. In the first month, you pay 12/78 of the interest, in the second month, you pay 11/78 of the interest, and so on. Therefore, the proportion of interest to principal in the monthly repayments is not consistent, with more interest paid at the beginning and less interest paid later.

Example:

If you borrow a loan for period of 48 months:

Similarly, the total interest for a 48-month car loan will be divided into 1176 parts. In the first month, you pay 48/1176 of the interest, in the second month, you pay 47/1176 of the interest, and so on.

The calculation results from the "Car Loan Calculator" are for reference only. Before borrowing, you must first consult the relevant banks or financial institutions for accurate information!

This "Car Loan Calculator" allows you to easily calculate loan details. If you find this "Car Loan Calculator" useful, please feel free to share! Thank you!

Credit score rating is very important when you borrow money, it is because if your credit score rating is too low, you may not be able to borrow money! For more information about credit score rating, please visit the below website:

Your Credit Score Rating - Plans & Tips

No. | Bank Name | Bank website |
---|---|---|

1 | Affin Bank Berhad | Affin Bank |

2 | Alliance Bank Malaysia Berhad | Alliance Bank |

3 | AmBank (M) Berhad | AmBank |

4 | BNP Paribas Malaysia Berhad | BNP Paribas Malaysia |

5 | Bangkok Bank Berhad | Bangkok Bank |

6 | Bank of America Malaysia Berhad | Bank of America Malaysia |

7 | Bank of China (Malaysia) Berhad | Bank of China Malaysia |

8 | Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad | MUFG Bank Malaysia |

9 | CIMB Bank Berhad | CIMB Bank |

10 | Citibank Berhad | Citibank |

11 | Deutsche Bank (Malaysia) Berhad | Deutsche Bank Malaysia |

12 | HSBC Bank Malaysia Berhad | HSBC Malaysia |

13 | Hong Leong Bank Berhad | Hong Leong Bank |

14 | India International Bank (Malaysia) Berhad | India International Bank |

15 | Industrial and Commercial Bank of China (Malaysia) Berhad | ICBC Malaysia |

16 | J.P. Morgan Chase Bank Berhad | J.P. Morgan Malaysia |

17 | Malayan Banking Berhad | Maybank |

18 | Mizuho Bank (Malaysia) Berhad | Mizuho Bank Malaysia |

19 | National Bank of Abu Dhabi Malaysia Berhad | NBAD Malaysia |

20 | OCBC Bank (Malaysia) Berhad | OCBC Malaysia |

21 | Public Bank Berhad | Public Bank |

22 | RHB Bank Berhad | RHB Bank |

23 | Standard Chartered Bank Malaysia Berhad | Standard Chartered Malaysia |

24 | Sumitomo Mitsui Banking Corporation Malaysia Berhad | SMBC Malaysia |

25 | The Bank of Nova Scotia Berhad | Scotiabank Malaysia |

26 | The Royal Bank of Scotland Berhad | Royal Bank of Scotland |

27 | United Overseas Bank (Malaysia) Bhd. | UOB Malaysia |

28 | Affin Islamic Bank Berhad | Affin Islamic Bank |

29 | Al Rajhi Banking & Investment Corporation (Malaysia) Berhad | Al Rajhi Bank Malaysia |

30 | Alliance Islamic Bank Berhad | Alliance Islamic Bank |

31 | AmBank Islamic Berhad | AmBank Islamic |

32 | Asian Finance Bank Berhad | Asian Finance Bank |

33 | Bank Islam Malaysia Berhad | Bank Islam |

34 | Bank Muamalat Malaysia Berhad | Bank Muamalat |

35 | CIMB Islamic Bank Berhad | CIMB Islamic |

36 | HSBC Amanah Malaysia Berhad | HSBC Amanah |

37 | Hong Leong Islamic Bank Berhad | Hong Leong Islamic Bank |

38 | Kuwait Finance House (Malaysia) Berhad | Kuwait Finance House |

39 | Maybank Islamic Berhad | Maybank Islamic |

40 | OCBC Al-Amin Bank Berhad | OCBC Al-Amin Bank |

41 | Public Islamic Bank Berhad | Public Islamic Bank |

42 | RHB Islamic Bank Berhad | RHB Islamic Bank |

43 | Standard Chartered Saadiq Berhad | Standard Chartered Saadiq |

44 | Affin Hwang Investment Bank Berhad | Affin Hwang Investment Bank |

45 | Alliance Investment Bank Berhad | Alliance Investment Bank |

46 | AmInvestment Bank Berhad | AmInvestment Bank |

47 | CIMB Investment Bank Berhad | CIMB Investment Bank |

48 | Hong Leong Investment Bank Berhad | Hong Leong Investment Bank |

49 | KAF Investment Bank Berhad | KAF Investment Bank |

50 | Kenanga Investment Bank Berhad | Kenanga Investment Bank |

51 | MIMB Investment Bank Berhad | MIMB Investment Bank |

52 | Maybank Investment Bank Berhad | Maybank Investment Bank |

53 | Public Investment Bank Berhad | Public Investment Bank |

54 | RHB Investment Bank Berhad | RHB Investment Bank |

55 | Al Rajhi Banking & Investment Corporation | Al Rajhi Bank |

56 | Deutsche Bank Aktiengesellschaft | Deutsche Bank |

57 | PT Bank Muamalat Indonesia, Tbk | Bank Muamalat Indonesia |

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