1. What is the Personal Loan Debt Calculator?

This calculator helps determine the current remaining balance on a personal loan in Malaysia using your monthly payment amount, interest rate, and remaining loan term.

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)
• \( n \) — Remaining number of months

Explanation: The equation calculates the present value of the remaining loan payments, accounting for the time value of money.

3. Importance of Loan Balance Calculation

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

4. Using the Calculator

Tips: Enter your exact monthly payment amount, annual interest rate (as quoted by your bank), and remaining months on your loan term.

5. Frequently Asked Questions (FAQ)

Q1: Why does my bank's statement show a different balance?
A: Some banks may use slightly different calculation methods or include additional fees. Always check with your lender for the most accurate balance.

Q2: How does early repayment affect my balance?
A: Early payments typically reduce principal faster, decreasing total interest paid. Some banks may charge early settlement fees.

Q3: What's the difference between reducing balance and flat rate loans?
A: This calculator is for reducing balance loans (common in Malaysia). Flat rate loans calculate interest differently.

Q4: Does this work for Islamic financing?
A: Islamic loans use different profit-rate calculations. Consult your Islamic bank for accurate balance information.

Q5: Can I use this for other types of loans?
A: This is designed for personal loans. Mortgage and car loan calculations may differ slightly.