Verified against BNM · SC · KPKT Updated July 2026

Car Loan (Hire Purchase) Calculator

Calculate your monthly installments and calculate exactly how much rebate you'll get if you settle your car loan early using the Rule of 78.

Loan Details

Minimum is usually 10% of car price.

Early Settlement (Rule of 78)

Want to sell the car or pay it off early? Enter how many months you have already paid to see your exact rebate.

Monthly Installment
RM 0
Loan Principal (Borrowed): RM 0
Total Interest Charged: + RM 0
Total Amount to Repay: RM 0

Early Settlement Breakdown

Months Remaining: 0
Outstanding Balance: RM 0
Interest Rebate (Rule of 78): - RM 0
Amount to Pay Bank to Settle: RM 0

The Trap: What is the Rule of 78?

In Malaysia, hire purchase (car loans) do not use reducing balance interest like home loans. They use a Flat Rate combined with the notorious Rule of 78.

The Rule of 78 ensures that the bank collects the vast majority of its interest profit in the first few years of your loan. This means if you decide to sell your car after 3 years on a 9-year loan, you will be shocked to find out that your "outstanding balance" is still extremely high, and the "rebate" you get for settling early is much smaller than you thought. Our calculator above exposes exactly how much rebate you are entitled to.