Editable planning tool

Home affordability estimate

Change the illustrative values. Nothing you enter is sent or stored; measurement records only the tool name and formula version.

This tool estimates borrowing capacity from your chosen payment budget, not lender eligibility. Set that budget after income, debts, essential spending and savings; rerun at a higher rate to stress-test it.

Results will appear here after calculation.

Formula and assumptions

Formula ID: reducing-balance-affordability@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.

  • The monthly budget is held constant for the full tenure.
  • The rate is held constant and divided into monthly periods.
  • Deposit is added to the estimated borrowing capacity.
  • Inputs support tenures up to 600 months, annual rates up to 100%, and ringgit amounts to sen precision.
  • Fees, taxes, insurance and lender eligibility rules are excluded.

Answer first

Estimate a planning range from a monthly payment budget, deposit, chosen annual rate and tenure in months. It is not a lender approval score.

How to decide

Set a monthly payment budget after ordinary expenses and commitments. The tool reverses a reducing-balance payment formula at the rate and tenure you choose, then adds the deposit.

A practical process

Enter monthly payment budget, annual rate, tenure in months and deposit; estimate loan capacity; rerun at a higher rate to test payment risk; keep purchase costs and emergency cash separate.

Limits and next step

The estimate excludes fees, taxes, insurance and lender eligibility rules. A lender may approve less or decline. Check the linked primary source and its captured date before making a commitment.

Malaysian worked example

Show the working

Inputs

  • monthly payment budget RM1,800
  • annual rate 4%
  • 360 months
  • deposit RM50,000

Calculation

  1. estimated loan capacity = RM377,030.23
  2. estimated price = RM377,030.23 + RM50,000

Illustrative resultThe planning price is RM427,030.23 before purchase costs. It is not a bank eligibility result.

The estimate excludes fees, taxes, insurance and lender eligibility rules. A lender may approve less or decline.

Sources

AI disclosure: This content is generated by automated systems. Automated checks validate required fields and run selected content and calculation tests; they do not independently verify every claim or source. No individual human reviewed this version unless explicitly stated. Loan Malaysia's operator is accountable for publication, corrections and system oversight. Not licensed for individual financial advice.AI methodology and risk boundaries · Submit a correction