Home Loan Calculator Malaysia
Estimate the monthly instalment on a Malaysian housing loan from the property price, down payment, interest rate and tenure, with optional monthly costs.
How a Malaysian home loan instalment is calculated: instalment = L × r(1 + r)n ÷ [(1 + r)n − 1], where L is the loan, r the monthly rate and n the months. Most loans charge interest on the reducing balance at a floating rate linked to the Standardised Base Rate (SBR).
Example: a RM450,000 loan (90% of RM500,000) at an illustrative 4.00% over 35 years is about RM1,992.49 a month, with roughly RM387,000 of total interest.
See the amortization schedule, check affordability with the debt-to-income calculator, or work out a car loan with the Malaysia car loan calculator.
Build your scenario
Use your actual figures where available. The output is an educational estimate based on the assumptions below.
Tax and insurance in this total are the monthly amounts you entered. They are not an escrow quote from a lender or insurer. PMI, HOA fees, points and closing costs are not added.
Displayed amounts are rounded to two decimal places. Keep the same currency and time period across related inputs.
Next steps for your home budget
Compare the monthly estimate with current bank offers and upfront purchase costs. This tool does not submit your details or provide a loan offer.
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How Malaysian home loan rates are set
Most Malaysian housing loans charge interest on the reducing balance and use a floating rate. Under Bank Negara Malaysia's reference rate framework, floating-rate loans taken since 2015 are priced as the bank's reference rate plus a spread. Since August 2022, new retail floating-rate loans reference the Standardised Base Rate (SBR), which is linked to the Overnight Policy Rate (OPR). When the OPR changes, the SBR and your instalment can change too. Ask your bank for the reference rate and spread separately so you can compare offers.
L = price − down payment, r = annual rate ÷ 12 ÷ 100, n = years × 12
Worked example: RM450,000 loan over 35 years
A RM500,000 property with a 10% (RM50,000) down payment leaves a RM450,000 loan. At an illustrative 4.00% a year over 35 years (420 months), the instalment is about RM1,992.49 a month, and total interest over the full tenure is roughly RM387,000, close to the amount borrowed. Shortening the tenure to 30 years raises the instalment but cuts total interest substantially; try it above. The 4.00% figure is an example, not a current bank rate.
Malaysian rules and costs to check
- Financing limit: Bank Negara Malaysia caps the loan-to-value ratio at 70% for an individual's third and subsequent housing loans, so a larger down payment is needed from the third property onward.
- Upfront costs: legal fees, stamp duty on the transfer and on the loan agreement, and valuation fees are not included here.
- Insurance: many banks offer mortgage reducing term assurance (MRTA) or level term assurance (MLTA). If it is financed into the loan, add it to the loan amount.
- Tenure: banks typically limit tenure by your age at the end of the loan. Check the bank's policy.
Sources
- Bank Negara Malaysia: Standardised Base Rate
- Bank Negara Malaysia: policies on housing loans and consumer guides.
Related calculators
- Mortgage calculator: the general version of this tool.
- Amortization schedule calculator: see the effect of extra payments.
- Debt-to-income calculator: how much of your income goes to debt.
- Car loan calculator Malaysia: hire-purchase flat-rate instalments.
Related education
- Malaysia EPF Contribution Rates Explained — new guide with worked examples.
- Salary needed for a RM500,000 house in Malaysia — compare instalment scenarios and lender affordability checks.
- How mortgage payments are calculated
- Why loan term changes total interest
Frequently asked questions
What is the Standardised Base Rate (SBR)?
It is the reference rate Malaysian banks use for new retail floating-rate loans since August 2022. It is linked to Bank Negara Malaysia's Overnight Policy Rate, and your loan rate is the SBR plus a spread set by the bank.
How much can I borrow for a third property?
Bank Negara Malaysia limits the loan-to-value ratio to 70% for an individual's third and subsequent housing loans. Banks can apply stricter limits based on your income and commitments.
Does this include legal fees and stamp duty?
No. The calculator covers the monthly instalment and any monthly costs you enter. Budget separately for legal fees, stamp duty and valuation.
Is the 4% rate in the example current?
No. It is an illustration. Use the rate in your own bank offer.
How is the monthly instalment on a Malaysian home loan calculated?
Instalment = L × r(1 + r)^n ÷ [(1 + r)^n − 1], with L the loan amount, r the annual rate ÷ 12 ÷ 100 and n the number of months. At an illustrative 4% over 35 years, RM450,000 costs about RM1,992.49 a month.
Does a shorter tenure save interest on a home loan?
Yes. A shorter tenure raises the monthly instalment but reduces total interest, because interest is charged on the balance for fewer months.
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