Malaysia car cost calculator
The true cost of a car — not just the sticker price. Monthly installment and total interest (flat rate or the new 2026 reducing-balance EIR), Rule-of-78 early settlement, depreciation and resale value, full cost of ownership, and whether renting it out actually pays. Pick a model or enter your own numbers.
The car
Down payment = RM 5,500 · Loan = RM 49,500
The loan
Malaysian hire-purchase charges interest on the full original loan (flat rate). Effective/true rate ≈ 4.72% p.a.
Monthly installment
RM 563.52
over 108 months
Total interest
RM 11,360
Total repayment
RM 60,860
Effective rate (APR)
4.72%
flat 2.55%
Loan amount
RM 49,500
Early settlement at year 5
Remaining installments
48
RM 27,049
Rule-of-78 rebate
RM 2,270
Settlement amount
RM 24,779
Penalty
RM 0
0%
Flat-rate loans use the Rule of 78 (Hire-Purchase Act 1967) — settling early only rebates a small slice of total interest.
Depreciation & resale at year 5
Resale value
RM 27,413
49.84% of price
Lost to depreciation
RM 27,587
50.16%
Reducing-balance at 13%/yr. National cars & Toyota hold value best; Continental & EVs drop faster.
True cost to own for 5 years (open running costs for full detail)
Net cost (after resale)
RM 46,378
Per month
RM 773
Per km
RM 0.62
Depreciation share
RM 27,587
biggest cost
FAQ
How is the monthly car installment calculated in Malaysia?
Traditional hire purchase uses a flat rate: interest = loan × flat rate × years, charged on the full original amount for the whole tenure, so monthly = (loan + total interest) ÷ months. This calculator also supports the new reducing-balance EIR method that participating banks use for new loans from 1 June 2026.
What changed with car loans in 2026?
The Hire-Purchase (Amendment) Act 2026 (effective 1 June 2026) replaces flat-rate interest and Rule-of-78 with reducing-balance Effective Interest Rate (EIR) for new loans from participating banks. Existing loans stay on flat rate. Switch the interest method to match your loan.
How does early settlement work?
For a flat-rate loan, the rebate on unpaid interest follows the statutory Rule of 78 (Hire-Purchase Act 1967) — settling early only returns a small share of total interest. For a reducing-balance loan you simply pay off the outstanding principal. The calculator shows both the rebate and the amount to clear the loan.
How much does a car depreciate in Malaysia?
Roughly 10–20% in year one, then ~10%/year. National cars (Perodua) and Toyota hold value best (about 65–75% after 3 years); Proton, Continental brands and EVs drop faster. Each model here has a typical rate you can adjust.
Can it work out rental / Trevo ROI?
Yes — enter your monthly rental income and it computes whether buying a car to rent out actually makes money after installments, interest, depreciation, early settlement and running costs. Figures are current as of July 2026 and fully editable.