Tools · Financing

Mortgage Calculator Malaysia

Work out the monthly instalment on a Malaysian home loan, the total interest, and a full year-by-year breakdown, then see what MRTA or MLTA cover adds.

Loan
Terms
If the rate moves
3.60%RM2,455RM0
3.85%RM2,532RM0
4.10%RM2,609base
4.35%RM2,688+RM79
4.60%RM2,768+RM159
Monthly installment
RM2,609
4.10% over 30 years
Total paid
RM939,338
Total interest
RM399,338
Cost / RM borrowed
1.74×
Where each ringgit goes (over loan life)
PrincipalRM540,000(57%)
InterestRM399,338(43%)
Year-by-year breakdown⌄
YearPrincipalInterestBalance
Y1RM9,346RM21,966RM530,654
Y2RM9,736RM21,575RM520,918
Y3RM10,143RM21,168RM510,776
Y4RM10,567RM20,745RM500,209
Y5RM11,008RM20,303RM489,201
Y6RM11,468RM19,843RM477,733
Y7RM11,947RM19,364RM465,786
Y8RM12,446RM18,865RM453,340
Y9RM12,966RM18,345RM440,374
Y10RM13,508RM17,803RM426,866
Y11RM14,072RM17,239RM412,794
Y12RM14,660RM16,651RM398,133
Y13RM15,273RM16,039RM382,861
Y14RM15,911RM15,401RM366,950
Y15RM16,575RM14,736RM350,375
Y16RM17,268RM14,043RM333,107
Y17RM17,989RM13,322RM315,117
Y18RM18,741RM12,570RM296,376
Y19RM19,524RM11,787RM276,852
Y20RM20,340RM10,972RM256,512
Y21RM21,189RM10,122RM235,323
Y22RM22,075RM9,236RM213,248
Y23RM22,997RM8,314RM190,251
Y24RM23,958RM7,353RM166,293
Y25RM24,959RM6,352RM141,334
Y26RM26,002RM5,310RM115,333
Y27RM27,088RM4,223RM88,245
Y28RM28,220RM3,092RM60,025
Y29RM29,399RM1,913RM30,627
Y30RM30,627RM684RM0
Homes in your budget
Homes for sale under RM500k
With a 10% down payment, a RM540,000 loan buys a home of about RM600,000.
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Not sure how much you can borrow?
Loan Qualifier
Estimate borrowing capacity across Malaysian banks.
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Disclaimer. This calculator models a standard term loan with fixed monthly installments. Flexi-loan offset behaviour, variable-rate adjustments mid-tenure, and bank-specific fees (processing, MRTA/MLTA) are not modelled. Always confirm the exact figure with your bank.

Example: RM540,000 over 30 years at 4.10%

Monthly installment RM2,609. Over the full term you repay RM939,338, of which RM399,338 is interest — 1.74× the amount borrowed. Change the figures in the calculator above for your own loan.

Yearly amortisation summary for a RM540,000 loan
YearPrincipal paidInterest paidBalance remaining
1RM9,346RM21,966RM530,654
2RM9,736RM21,575RM520,918
3RM10,143RM21,168RM510,776
4RM10,567RM20,745RM500,209
5RM11,008RM20,303RM489,201
10RM13,508RM17,803RM426,866
20RM20,340RM10,972RM256,512
30RM30,627RM684RM0

Years 1-5, 10, 20 and 30 shown. The full month-by-month schedule is in the calculator above.

How a Malaysian mortgage works

Standard Malaysian home loans amortise: each month you pay a fixed installment, split between interest (on the remaining balance) and principal. Early in the loan you pay mostly interest. By the final year you are paying mostly principal.

  1. 01
    Enter the loan amount

    The principal you are borrowing from the bank, not the property price.

  2. 02
    Enter the interest rate

    The effective annual rate (e.g. 4.10% as 4.10). Use what the bank quoted you, not BLR.

  3. 03
    Choose the tenure

    Number of years. Malaysian banks offer up to 35 years for residential, capped at age 65–70 at maturity.

  4. 04
    Read the result

    Monthly installment + total interest over the life of the loan + a year-by-year breakdown.

Things to factor in

In the installment
  • Principal repayment
  • Interest at the effective rate
Not in the installment
  • MRTA / MLTA insurance (one-off premium or annual)
  • Fire insurance (annual)
  • Quit rent and assessment
  • Maintenance / sinking fund (strata)
  • Early-settlement penalty during lock-in (2–3% of original loan)

MRTA vs MLTA: mortgage insurance explained

Both pay off the home loan if the borrower dies or becomes totally and permanently disabled. Neither is required by law, but banks usually ask for one, and the premium is not part of the instalment above. Islamic home financing uses the takaful versions, MRTT and MLTT.

MRTA: Mortgage Reducing Term Assurance
  • The sum covered falls as the loan is repaid, roughly in step with the balance.
  • Usually one premium paid at the start, which many buyers add to the loan.
  • Tied to that loan, with the bank paid first; it usually ends when the loan is settled or refinanced.
  • Costs less than MLTA for the same starting cover.
MLTA: Mortgage Level Term Assurance
  • The sum covered stays level for the whole term.
  • Premiums are paid yearly or monthly.
  • Whatever the loan does not need goes to your family.
  • Usually stays with you if you refinance or sell, and costs more than MRTA.

What sets the premium: your age, health and smoking status, the amount and term covered, and, if you finance it, the interest on the extra loan. Ask the bank or insurer for a quote; if you add the premium to the loan, enter the larger loan amount in the calculator above.

Frequently asked questions

How is my monthly home loan installment calculated?+

Malaysian home loans use the standard amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual ÷ 12), and n is the total number of months. Each installment includes both principal and interest. Early years are interest-heavy; later years pay down more principal.

What interest rate should I use?+

Use the effective annual rate quoted by your bank. Most Malaysian home loans are variable, pegged to BLR or Base Rate (BR) plus a spread (e.g. BR + 0.4%). Typical effective rates in 2026 are around 3.85%–4.50% for residential. Always confirm with the bank.

How long should my loan tenure be?+

Most Malaysian banks offer up to 35 years for residential property, capped at age 65–70 at the end of the loan. Longer tenure = lower monthly installment but more total interest. Shorter tenure = higher monthly but you save substantially on interest over the life of the loan.

What is the lock-in period?+

Most Malaysian home loans have a 3–5 year lock-in. If you fully settle (refinance or sell) within the lock-in, the bank charges 2–3% of the original loan amount as a penalty. After the lock-in, you can refinance freely. Factor this in if you might refinance.

Does this calculator handle flexi loans?+

No. Flexi loans (where your current account balance offsets principal daily) have materially different effective interest behaviour and are best modelled by your bank's in-house calculator. This tool models a standard term loan with fixed monthly installments.

How much can I actually borrow?+

Banks size loans on your Debt Service Ratio (DSR) — usually 60–70% of net income — and your credit history. Use the Loan Qualifier tool to estimate your borrowing capacity across Malaysian banks before fixing on a property price.

What is the difference between MRTA and MLTA?+

MRTA (Mortgage Reducing Term Assurance) covers a sum that falls as the loan is repaid, is usually paid as one premium at the start (often added to the loan) and is tied to that loan. MLTA (Mortgage Level Term Assurance) covers a level sum for the whole term, is paid yearly or monthly, costs more, and usually stays with you if you refinance or sell. Neither is required by law. This calculator does not include either premium.

Should I prepay extra into my mortgage?+

Outside the lock-in, prepayments directly reduce principal — saving interest for the remainder of the loan. A flexi loan setup is generally the most efficient way to do this. Always confirm prepayment terms with your bank.

Sources