1. What is the Personal Loan Debt Calculator?

This calculator helps determine the remaining balance on personal loans from Malaysian banks. It's useful for financial planning, refinancing decisions, and understanding your debt obligations.

2. How Does the Calculator Work?

The calculator uses the loan balance formula:

Where:

• \( B \) — Remaining balance (MYR)
• \( PMT \) — Monthly payment amount (MYR)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Number of remaining months

Explanation: The formula accounts for the time value of money, calculating how much principal remains after a series of payments.

3. Importance of Loan Balance Calculation

Details: Knowing your remaining loan balance helps with refinancing decisions, early settlement negotiations, and personal financial planning.

4. Using the Calculator

Tips: Enter your exact monthly payment, the annual interest rate (as stated in your loan agreement), and the remaining number of months in your loan term.

5. Frequently Asked Questions (FAQ)

Q1: Does this work for all Malaysian banks?
A: Yes, the formula is standard for fixed-rate personal loans from all major Malaysian banks.

Q2: What if my interest rate changes?
A: This calculator assumes a fixed rate. For variable rate loans, you'll need to recalculate when rates change.

Q3: How accurate is this calculator?
A: It's mathematically precise for fixed-rate loans. Actual bank statements might show minor differences due to rounding.

Q4: Can I use this for other types of loans?
A: While the principle is similar, mortgage and car loans may have different calculation methods.

Q5: Why is my remaining balance higher than expected?
A: Early payments are mostly interest. The principal portion increases with each payment in a typical amortizing loan.