Personal Loan Calculator
Estimate your monthly instalment, total interest and total repayment for a personal loan, with a full amortization schedule.
Loan details
Summary
Repayment schedule
| No. | Payment | Principal | Interest | Balance |
|---|
How the personal loan calculator works
Your monthly instalment is derived from the loan amount, the monthly interest rate and the number of months using the standard amortization formula. Early instalments are mostly interest; later ones are mostly principal.
FAQ
How is the instalment calculated?
From the amount, monthly rate and number of months via the amortization formula — interest first, then principal.
Does a shorter term cost less?
Yes — a higher monthly payment but much lower total interest.
Estimate for general guidance only; confirm figures with your lender.
Flat rate or reducing balance: compare the actual cost
The repayment schedule above uses reducing-balance interest. This separate comparison applies the same quoted rate to both methods, with fees deducted at disbursement. It is not a lender offer.
| Method | Monthly payment | Total repayments | Net received | Interest + fees | Effective annual rate |
|---|
How to read the comparison
For RM10,000 over three years at 4%, without fees: flat interest is RM1,200 and monthly payment RM311.11; reducing-balance monthly payment is about RM295.24. Equal quoted percentages are not equal borrowing costs.
Net received = principal − upfront fees. Interest + fees = repayments − net received. The effective rate solves net received = sum of discounted month-end payments, then compounds the monthly rate: (1 + monthly rate)^12 − 1. This is a cash-flow estimate, not a jurisdiction-specific APR disclosure. Amounts are rounded only for display.
Assumes fixed rates, equal monthly payments and no early settlement. Add all known upfront charges to fees; financed fees, ongoing insurance, payment holidays, late charges and rebates need a different cash-flow model. No inputs are saved or sent to analytics.
Check the type of interest first
This calculator uses reducing-balance interest. Enter the loan principal, a nominal annual reducing-balance rate and the repayment term. Interest in each month is charged on the remaining principal. Fees and insurance are excluded, so the displayed total is not necessarily the full cost of a lender’s offer.
Reducing balance versus flat rate
For RM50,000 over five years at 7% using this reducing-balance model, the monthly payment is RM990.06 and total interest is RM9,403.60. By contrast, a simple 7% flat-rate illustration calculates interest as RM50,000 × 7% × 5 = RM17,500, giving RM1,125 per month before fees. The same printed percentage does not mean the same borrowing cost.
What to compare in an offer
Use the lender’s stated rate basis, total payable, fees and payment schedule. Do not paste a flat rate into this tool and treat the answer as the quoted instalment. The formula uses i = annual nominal rate / 12 and N = years × 12. A zero rate, where entered, gives principal / N. The flat-rate illustration above explains the distinction; the main schedule uses reducing balance; the separate quote comparison covers both methods.
Calculation methods and limitationsExample calculations checked against this page’s code on 7 October 2026.
Questions worth working through
Use the result with confidence
Use a reducing-balance rate
Enter principal, loan term and an annual nominal reducing-balance interest rate. The monthly rate is annual rate ÷ 12. A bank’s flat-rate advertisement is a different input convention: pasting it here usually understates the payment for that flat-rate product.
Compare rates on the same basis
For 10,000 over one year at 12% reducing-balance nominal interest, the monthly payment is about 888.49. A 12% flat-rate loan instead charges 1,200 interest on the original principal, giving 933.33 per month before fees. The two “12%” labels do not mean the same cost.
Before choosing the lowest payment
A longer term can lower each payment while raising the total interest. Compare total repayment as well as the monthly amount. Processing charges, insurance, stamp duty, early-settlement rules and approval criteria are outside this model. Use the lender’s repayment schedule to check an actual offer.