Housing Loan Calculator Malaysia 2025

Housing Loan Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (PMT):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Housing Loan Payment Formula?

The housing loan payment formula calculates the fixed monthly payment required to repay a loan over its term. This standard formula is used by banks in Malaysia including Maybank, CIMB, and Public Bank.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (MYR)
\( r \) — Monthly interest rate (annual rate divided by 12)
\( n \) — Total number of payments (loan term in years × 12)
\( PMT \) — Monthly payment amount (MYR)

Example: For a MYR 500,000 loan at 2.88% p.a. over 30 years (360 months):

Monthly interest rate = 2.88%/12 = 0.0024
Payment = 500,000 × (0.0024 × (1.0024)^360) / ((1.0024)^360 - 1) ≈ MYR 2,075.01

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with financial planning, comparing loan offers, and determining affordability before committing to a property purchase.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate (e.g., 2.88 for 2.88%), and loan term in years. The calculator uses current 2025 rates as defaults.

5. Frequently Asked Questions (FAQ)

Q1: What is the current housing loan rate in Malaysia 2025?
A: As of 2025, rates range from 2.88% to 3.5% p.a. depending on bank and loan package (Maybank offers 2.88% for qualified borrowers).

Q2: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. A 30-year loan will have lower monthly payments than a 20-year loan for the same amount.

Q3: Are there other costs besides the monthly payment?
A: Yes, consider MRTA insurance, fire insurance, stamp duty, and legal fees which add to the total cost.

Q4: Can I get a lower interest rate?
A: Rates depend on OPR, bank promotions, and your credit profile. Negotiate with banks or consider refinancing when rates drop.

Q5: How accurate is this calculator?
A: This provides estimates for fixed-rate loans. Actual payments may vary slightly due to bank-specific calculations or variable rate changes.