1. What is the PMT Formula?

The PMT (Payment) formula calculates the fixed monthly payment required to repay a loan over a specified period. This is the standard formula used by Public Bank Malaysia and other financial institutions for home loan calculations.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

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

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that covers both principal and interest.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and financial planning. It allows you to compare different loan options and choose terms that fit your financial situation.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate (check Public Bank's current rates), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current home loan rate at Public Bank Malaysia?
A: Rates vary (typically 3.0-4.5% p.a.) depending on loan type, amount, and term. Check with Public Bank for current rates.

Q2: Does this include other fees?
A: No, this calculates principal and interest only. Additional costs may include insurance, processing fees, and legal fees.

Q3: Can I reduce my total interest paid?
A: Yes, by choosing a shorter loan term or making additional principal payments when possible.

Q4: What is the maximum loan term in Malaysia?
A: Typically up to 35 years or until age 65-70, whichever comes first.

Q5: How often are interest rates revised?
A: For fixed-rate loans, the rate stays the same. For variable-rate loans, rates may change based on OPR (Overnight Policy Rate) adjustments.