Answer first

Estimate a reducing-balance monthly payment, total payments and interest. Change the rate to see why a long tenure magnifies small rate movements.

Editable planning tool

Home loan estimate

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

Results will appear here after calculation.

Formula and assumptions

Formula ID: reducing-balance-loan@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.

  • Payments are monthly and equal.
  • The nominal annual rate is divided by 12.
  • Fees, insurance, taxes and rate changes are excluded.
  • Inputs support tenures up to 600 months, annual rates up to 100%, and ringgit amounts to sen precision.
  • Displayed Malaysian ringgit values are rounded to two decimal places.

How to decide

The calculator uses M = P×r×(1+r)^n ÷ ((1+r)^n−1), where r is the annual rate divided by 12 and n is the number of monthly payments.

A practical process

Enter principal, annual rate and years; validate positive values; compute without rounding intermediate values; round displayed ringgit to two decimals.

Limits and next step

Excludes fees, insurance, late charges and future rate changes. Check the linked primary source and its captured date before making a commitment.

Malaysian worked example

Show the working

Inputs

  • P = RM450,000
  • annual rate = 4%
  • n = 420

Calculation

  1. r = 0.04 ÷ 12
  2. M = RM1,992.4863 before display rounding
  3. interest = unrounded M × 420 − RM450,000

Reviewed resultEstimated monthly payment is RM1,992.49 and total interest is RM386,844.26 if the input rate remains unchanged.

Excludes fees, insurance, late charges and future rate changes.

Verify

Sources and update record