The approximate effective annual rate is higher than the flat quote.
Finance calculator
Personal Loan Calculator
See the monthly instalment, total repayment and the effective cost hidden behind a flat annual rate.
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No account. Formula and assumptions are shown below.
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Personal loan details
Formula & disclaimer
Flat Interest = Amount Γ Flat Rate Γ Years; Instalment = (Amount + Interest + Fees) Γ· Months
View assumptionsFormula reviewCalcs at Hand Editorial TeamVerified 26 August 2026 Β· automated checks included
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How to read this result
Three useful checks, kept deliberately short.
A RM30,000 personal loan at 6.5% flat for five years: Calculate flat interest on the original amount Β· Add any entered fees Β· Divide total repayment into monthly instalments.
Flat interest stays based on the original amount. The effective rate solves a reducing-balance rate from the same monthly cash flows.
Formula and assumptions
Flat Interest = Amount Γ Flat Rate Γ Years; Instalment = (Amount + Interest + Fees) Γ· MonthsFlat interest stays based on the original amount. The effective rate solves a reducing-balance rate from the same monthly cash flows.
Keep in mind: The effective rate is an estimate and excludes contract-specific timing, stamp duty, rebates and early settlement rules.
Produced byCalcs at Hand Editorial Team
Last formula check26 August 2026
Review methodKnown examples + boundary cases
Editorial and correction policy β