Calculating your Malaysian mortgage repayment is straightforward once you understand the formula. This guide walks you through the exact maths, a worked example for a RM450,000 property, and what each component means for your finances.
The Malaysian Mortgage Formula
Malaysian home loans use the reducing balance method, meaning interest is charged only on the outstanding principal each month. The monthly instalment formula is:
M = P ร [r(1+r)^n] / [(1+r)^n - 1]
Where: P = Loan Principal | r = Monthly Interest Rate (annual รท 12) | n = Number of Months
Worked Example: RM450,000 Property
| Parameter | Value |
|---|---|
| Property Price | RM450,000 |
| Down Payment (10%) | RM45,000 |
| Loan Amount | RM405,000 |
| Interest Rate | 4.35% p.a. |
| Tenure | 30 years (360 months) |
| Monthly Instalment | RM2,008 |
| Total Interest Paid | RM317,880 |
| Total Amount Paid | RM722,880 |
Skip the manual calculation โ our ๐ Mortgage Calculator handles it instantly and generates the full month-by-month amortisation table.
What Affects Your Monthly Repayment?
- Loan amount โ the bigger the down payment, the lower your instalment
- Interest rate โ 0.25% difference on RM400k = ~RM56/month
- Tenure โ longer tenure = lower monthly payment but far more total interest
30 vs 35 Year Tenure: The Trade-off
On a RM400,000 loan at 4.35%: a 30-year tenure costs RM1,985/month (total interest: RM314,600) while a 35-year tenure costs RM1,869/month (total interest: RM384,780). The extra 5 years saves RM116/month but costs an extra RM70,180 in interest.