Personal Loan Calculator

What is "Personal Loan Calculator"?

The "Personal 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, auto loan, property loan and so on. Regardless of whether it is a personal loan, credit card loan, auto loan, or property loan the most important factor is the annual interest rate. How can you calculate the monthly repayment amount for a personal loan based on the annual interest rate? Detailed explanations will be provided below.

Personal Loan Calculations Based on Annual Interest Rate

The formula for calculating personal 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

Example:

If I borrowed a personal loan of RM50,000 from a bank with an annual interest rate of 5% and a repayment period of 36 months, then my monthly repayment amount would be:





There is another type of personal loan that is not calculated based on the annual interest rate but rather based on monthly flat rate. How should you calculate it, and what is the difference between monthly flat rate and annual interest rate?

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Personal Loan Calculations Based on Monthly Flat Rate

The formula for calculating personal loans based on monthly flat rate is as follows:

• A is the monthly repayment amount
• P is the loan amount (how much money you borrowed)
• r is the monthly interest rate of the loan (%)
• n is the number of repayment months

Example:

If I borrowed a personal loan of RM50,000 from a bank with a monthly flat rate of 0.14% and a repayment period of 36 months, then my monthly repayment amount would be:




In this example, with a monthly flat rate of 0.14% and a repayment period of 36 months, the actual annual interest rate is 3.22%.

Please note that monthly flat rate can be converted into the actual annual interest rate. When comparing loans, it is advisable to compare them based on the annual interest rate, and the lower the actual annual interest rate, the better.

For your convenience, this website has prepared a calculator for Monthly Flat Rate/Actual Annual Interest Rate

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Rule of 78

Personal 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 36 months:



Similarly, the total interest for a 36-month personal loan will be divided into 666 parts. In the first month, you pay 36/666 of the interest, in the second month, you pay 35/666 of the interest, and so on.

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

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Credit score rating in Malaysia

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

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List of banks in Malaysia

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

Source: List of Onshore Banks in Malaysia - Bank Negara Malaysia

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

Other loan calculators in Malaysia:

• Loan Calculator
• Monthly Flat Rate/Actual Annual Interest Rate Calculator
• Home Loan Calculator
• Car Loan Calculator