Car & Personal Loan Settlement Calculator
Estimate the amount needed to settle a loan early. This is a mathematical estimate — your bank's official settlement quotation is the figure that counts. Always request it before you pay.
Estimated settlement
I help Malaysian SMEs get their numbers — and their systems — right with Bukku accounting software. These calculators are a free resource I share — not financial, credit or property advice.
Message Faiz on WhatsApp →Two very different numbers
An estimated mathematical balance is what the arithmetic suggests you still owe. The actual settlement amount is what your bank will accept to close the account — and it can differ because of the product type, any rebate on unearned interest or profit, early-settlement charges, accrued amounts and the exact settlement date. If your bank has already given you an outstanding balance, enter it in the optional field to use it as the primary figure.
What changed on 1 June 2026
The Hire-Purchase (Amendment) Act 2026 took effect on 1 June 2026. For new hire-purchase (vehicle financing) agreements, it abolishes the flat-rate structure and the Rule of 78, moving to reducing-balance pricing with an effective interest rate (EIR) and a rebate based on the actual outstanding balance. Agreements entered before 1 June 2026 continue under the older rules, including the Rule of 78 — but banks have introduced an industry-wide goodwill early-settlement discount so those balances are brought closer to a reducing-balance outcome.
Practical takeaway: for a newer car loan or a reducing-balance personal financing, use the "Reducing balance" mode. For an older fixed-rate hire-purchase agreement, the "Rule of 78" mode estimates the traditional rebate — but your bank may apply a goodwill discount on top, so the official quote is likely to be more favourable.
How the Rule of 78 rebate is estimated
The Rule of 78 (a sum-of-digits method) front-loads interest to the early months, so early settlement returns only a portion of the unearned term charges. This tool estimates the rebate as total term charges × [u(u+1)] ÷ [n(n+1)], where n is the original number of instalments and u is the number remaining. The estimated settlement is the remaining scheduled payments minus that rebate, plus any charge you enter. Treat it as an estimate of the traditional method, not a quotation.
Frequently asked questions
Is this the exact amount my bank will accept?
No. It is an estimate. Only the bank's official settlement letter is binding, because it applies your specific product terms, rebate method, charges and settlement date.
Which mode should I use?
Use "Reducing balance" for home loans, reducing-balance personal financing and newer hire-purchase agreements (from 1 June 2026). Use "Rule of 78" for older fixed-rate hire-purchase (vehicle) agreements entered before 1 June 2026.
Do I get a rebate for settling early?
Often, yes — on the unearned interest or profit — but the method and amount depend on your agreement. For older Rule-of-78 agreements, banks have also introduced a goodwill discount. Confirm with your lender.
Are my figures stored?
No. Everything runs in your browser; nothing is saved or sent.
Sources & methodology
- Reducing-balance amortisation and sum-of-digits (Rule of 78) — standard financial mathematics.
- Association of Banks in Malaysia — hire-purchase changes and goodwill early-settlement discounts (effective 1 June 2026).
- Hire-Purchase Act 1967 and the Hire-Purchase (Amendment) Act 2026 — governing framework for vehicle hire purchase.
Disclaimer: Estimates for general information and planning only — not financial advice or an official settlement quotation. Actual settlement amounts, rebates and charges depend on the relevant bank or financier and the applicable product terms. Obtain the official settlement quotation from your bank/financier before making payment.