Monthly repayment, total interest, and total paid.
Monthly repayment
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Total interest
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Total amount paid
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Your breakdown
Updates live as you type| Item | Amount |
|---|
Worked example
Take a RM450,000 home loan at 4.2 percent a year over 30 years. The monthly rate is 4.2 percent divided by 12, which is about 0.35 percent, and the term is 360 monthly payments. The standard amortisation formula gives a monthly repayment of about RM2,200.58. Over the full 30 years that is RM2,200.58 multiplied by 360, or roughly RM792,208 repaid in total. Subtracting the RM450,000 you originally borrowed leaves about RM342,208 of interest, so at this rate and term the interest is close to three quarters of the amount borrowed. Shortening the tenure or securing a lower rate would cut the total interest sharply, since most of the early payments go toward interest rather than principal.
| Item | Amount (RM) |
|---|---|
| Loan amount | 450,000 |
| Monthly repayment | 2,200.58 |
| Total repaid over 360 months | 792,208 |
| Total interest | 342,208 |
How it is calculated
Malaysian home loans almost always use standard amortisation, where every monthly payment is identical and covers both interest and a slice of principal. The payment equals the loan amount times the monthly rate times one plus the monthly rate to the power of the number of months, divided by that same power term minus one. The monthly rate is the annual rate divided by 12. Early payments are mostly interest because the outstanding balance is large, and the principal share grows over time. Many local mortgages are priced as a margin over a Standardised Base Rate, so the effective rate can move when the central bank adjusts the Overnight Policy Rate, and you should enter the rate you expect to pay. A longer tenure lowers the monthly repayment but raises total interest, while paying extra toward principal early shortens the schedule and saves interest.