What the amortization calculator does
This calculator shows how a home loan is paid down year by year: how much of each year's payments goes to interest and how much to the loan itself, and what is left owing at the end of each year.
Add an extra monthly payment to see how much interest it saves and how many years earlier the loan ends.
What you should know
- Early years
- Most of each instalment is interest at first; the share that pays down the loan grows every year
- Example
- A RM540k loan at 4.2% over 35 years costs about RM491,600 in interest. Paying RM500 more each month saves about RM169,000 and ends the loan about 10 years sooner
- Flexi and semi-flexi loans
- Let you pay extra and take it back later; the extra reduces the balance that interest is charged on
- Term loans
- Extra payments may only reduce the balance at set times, or count as advance instalments. Check your loan's terms
Good to know
- Some loans charge a fee for paying off the whole loan during a lock-in period, often the first few years. Check your letter of offer.
- An extra payment early in the loan saves more interest than the same payment late in the loan.
Figures reflect the rules as we understand them and can change. Check with your bank, lawyer or LHDN before you rely on them.