Home Loan Calculator Malaysia 2026
Work out the monthly instalment, total interest and full schedule for a Malaysian housing loan, and see what extra payments save.
Preview page. The rates are checked against official sources; the page is awaiting final review before it is published.
Result
This is an estimate for planning. Confirm the final figure with the bank, JPJ or LHDN before you commit.
How it's calculated
A housing loan is a reducing balance loan: each month the bank charges interest on what you still owe, your instalment pays that interest first, and the rest reduces the balance. The instalment is set so that the balance reaches zero with the last payment of the tenure.
With P the loan amount, r the yearly rate divided by 12 and n the number of months:
instalment = P × r ÷ (1 − (1 + r)^−n)
Under daily rest the interest for a month is the balance × yearly rate ÷ 365 × the number of days in that month, which is why January costs a little more than February. The instalment stays the same; the small differences accumulate and the final payment is adjusted to clear the balance.
Worked example (the default inputs). A property priced at RM 500,000.00 with 90% financing gives a loan of RM 450,000.00 and a down payment of RM 50,000.00. At 4.00% over 30 years the monthly rate is 0.3333% and n is 360, so the instalment is RM 2,148.37.
In the first month (31 days) the interest is 450,000 × 4% ÷ 365 × 31 = RM 1,528.77, and only RM 619.60 of the instalment reduces the balance. Over 30 years on daily rest, with the loan starting in January 2026, the interest adds up to RM 323,768.57 and the total paid is RM 773,768.57. On monthly rest the interest would be RM 323,412.78.
Paying an extra RM 500.00 every month clears the loan in 252 months instead of 360, nine years early, and saves RM 108,606.00 of interest.
Daily rest, flexi accounts and prepayments
Because interest is counted daily, anything that lowers the balance early helps: paying the instalment on the first of the month rather than the last, parking your salary in a flexi account until bills are due, or making an extra transfer whenever you can. The schedule below shows how slowly the balance moves in the early years, when most of each instalment is interest, and how quickly it falls near the end. Extra payments in the early years are therefore worth far more than the same amount later.
Lock-in periods
Offer letters usually include a lock-in of two to five years. Full settlement or refinancing inside that window attracts a penalty on the original loan amount. Partial prepayments are generally allowed, but some banks require notice or a minimum amount, and a few treat prepayments as advance instalments unless you ask for the principal to be reduced. Read the clause, and when you prepay, state in writing that the amount is to reduce the principal.
Fixed or floating
Most conventional housing loans in Malaysia float on the Standardised Base Rate plus a spread fixed for the life of the loan. When Bank Negara Malaysia moves the Overnight Policy Rate the SBR follows, and the bank either changes your instalment or, more often, keeps it and changes the tenure. Islamic financing offers fixed-profit and floating-profit structures with the same arithmetic. Enter the all-in rate from your offer letter here and rerun the numbers when the rate changes.
FAQ
What is the difference between daily rest and monthly rest?
With daily rest the bank works out interest on your balance every day and adds up the days in the month, so a payment made early in the month saves interest from that day. With monthly rest interest is charged once on the balance at the start of the month, and paying early changes nothing until the next month. Over a full loan the totals are close; daily rest rewards early and extra payments.
Should I take a flexi, semi-flexi or basic term loan?
A flexi loan links the loan to a current account so that money parked there reduces the balance on which daily interest is charged, usually for a monthly fee. Semi-flexi lets you prepay and withdraw the prepaid amount on request, sometimes with a fee. A basic term loan is the cheapest to run but prepayments are locked in. If you expect to hold spare cash, flexi or semi-flexi pays for itself quickly at current rates.
What happens if I settle or refinance within the lock-in period?
Most offer letters set a lock-in of two to five years with a penalty, commonly 2% to 3% of the original loan amount, if you settle in full or refinance before it ends. Partial prepayments are normally allowed without penalty, but check the clause. This calculator warns you when your extra payments would clear the loan inside the lock-in you enter.
Why does a shorter tenure cost more per month but less in total?
Because interest is charged on the balance for as long as it is outstanding. On the default loan, 25 years instead of 30 raises the instalment from RM 2,148.37 to RM 2,375.27, about RM 227 more a month, but cuts the total interest by roughly RM 61,000. Pick the longest tenure you can comfortably prepay, then prepay.
How much can I borrow?
Banks look at your debt service ratio, which compares your monthly commitments including the new instalment with your net income, and at the margin of financing, which is 90% of the price for most buyers of a first or second home and lower for a third. Bank Negara Malaysia caps the tenure at 35 years. Use the DSR calculator when it is published to test your own numbers.
Sources
- Bank Negara Malaysia, revised Reference Rate Framework: Standardised Base Rate from 1 August 2022
- Bank Negara Malaysia, Reference Rate Framework policy document, 27 March 2026
- Bank Negara Malaysia, measures to further promote a sound and sustainable household sector, 5 July 2013 (35-year maximum tenure)