1. What is the Loan Payoff Time Calculation?

This calculator determines how long it will take to pay off a personal loan from Malaysian banks based on your monthly payment amount, loan principal, and interest rate.

2. How Does the Calculator Work?

The calculator uses the loan payoff formula:

Where:

• \( n \) — Number of months to payoff
• \( PMT \) — Monthly payment amount (MYR)
• \( P \) — Principal loan amount (MYR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)

Explanation: The formula calculates the time required to pay off a loan when making fixed monthly payments, accounting for compound interest.

3. Importance of Payoff Time Calculation

Details: Knowing your payoff time helps with financial planning, comparing loan options, and understanding the true cost of borrowing.

4. Using the Calculator

Tips: Enter your exact monthly payment, the original loan amount, and the annual interest rate. Ensure all values are positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is my payoff time longer than expected?
A: Higher interest rates or smaller monthly payments extend payoff time. Even slightly lower payments can significantly increase total time.

Q2: How can I pay off my loan faster?
A: Making larger monthly payments or occasional lump sum payments will reduce your payoff time and total interest paid.

Q3: Does this work for Islamic financing?
A: This calculator is designed for conventional loans. Islamic financing uses different profit rate calculations.

Q4: What if I see "undefined" as the result?
A: This means your monthly payment is too small to ever pay off the loan (PMT ≤ P×r). You need to increase your payments.

Q5: Are there prepayment penalties in Malaysia?
A: Some Malaysian banks charge prepayment penalties. Check your loan agreement before making extra payments.