1. What is the Loan Payoff Time Calculation?

This calculator determines how long it will take to pay off a government-backed personal loan in Malaysia 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 that cover both principal and interest.

3. Importance of Payoff Time Calculation

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

4. Using the Calculator

Tips: Enter your monthly payment amount in MYR, the original loan amount in MYR, and the annual interest rate as a percentage. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What types of loans does this calculator work for?
A: This is designed for fixed-rate personal loans offered by Malaysian government-backed programs.

Q2: Why does my payment need to be higher than the interest?
A: If your payment only covers interest, you'll never pay down the principal. Payments must exceed interest to reduce the loan balance.

Q3: Does this account for early payments or lump sums?
A: No, this calculates time based on regular fixed payments only. Extra payments would shorten the payoff time.

Q4: What's a typical payoff period for government loans?
A: Malaysian government personal loans typically have terms from 1-10 years depending on amount and purpose.

Q5: How accurate is this calculation?
A: It's mathematically exact for fixed-rate loans with consistent payments. Actual results may vary slightly due to rounding in real loan amortization.