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Change the illustrative values. Nothing you enter is sent or stored; measurement records only the tool name and formula version.
Method boundary: Legacy flat-rate illustration only. It does not determine which calculation method applies to a current or proposed hire-purchase agreement. Check the current provider disclosure and agreement; Malaysian legal review of the 2026 transition remains pending.
Results will appear here after calculation.
Formula and assumptions
Formula ID: flat-rate-hire-purchase@1.1.0
Calculations use unrounded intermediate values. Ringgit and percentage outputs are rounded to two decimal places; break-even months are rounded up. A displayed monthly amount multiplied by tenure may therefore differ slightly from the displayed total.
- Interest is calculated on the original financed amount for the full tenure.
- Deposit is subtracted before interest is calculated.
- Fees, rebates, insurance and agreement-specific rounding are excluded.
- Inputs support tenures up to 600 months, annual rates up to 100%, and ringgit amounts to sen precision.
- Displayed values are rounded only after unrounded calculations are complete.
Answer first
Check the arithmetic in an older flat-rate hire-purchase quotation from vehicle price, deposit, annual flat rate and tenure. It does not model a new reducing-balance facility.
How to decide
For a quotation that explicitly uses the legacy flat method, principal equals price minus deposit; flat interest equals principal × annual flat rate × years; and total repayment equals principal plus flat interest.
A practical process
First confirm the method in the provider's current disclosure. Use this tool only if the document itself states a flat rate; reject deposits above price and non-positive terms; show principal, interest, total and monthly amount separately.
Limits and next step
Maybank states that it adopted reducing-balance hire purchase from 1 August 2026. This tool is not a current provider quotation and must not be used for a reducing-balance agreement. Check the linked primary source and its captured date before making a commitment.
Malaysian worked example
Show the working
Inputs
- legacy quotation price RM80,000
- deposit RM8,000
- flat rate 3%
- 84 months
Calculation
- principal = RM72,000
- legacy flat interest = RM15,120
- legacy total = RM87,120
- monthly = RM1,037.14
Illustrative resultThe legacy quotation arithmetic gives RM1,037.14 monthly and RM15,120 interest.
Maybank states that it adopted reducing-balance hire purchase from 1 August 2026. This tool is not a current provider quotation and must not be used for a reducing-balance agreement.
Sources
- Source checked on 2026-09-14Maybank
Hire Purchase/-i and reducing-balance framework
- Effective
- 2026-08-01