Effective rate calculator
Translate a flat rate into a cash-flow-based borrowing cost.
From a flat rate
RM
%
RM
Assumes equal monthly payments, starting one month after disbursement.
Estimated annualized equivalent rate
9.15%p.a.
Monthly instalmentRM 625.00
Net proceedsRM 30,000.00
Compounded annual yield9.55%
Headline rate = monthly IRR × 12. Compounded yield = (1 + monthly IRR)¹² − 1. Lender conventions and actual payment dates can differ.
Mathematical estimates for comparison. Confirm the rate and convention in the provider’s PDS. BNM reference
What to know
Flat interest is charged on the original principal. The equivalent rate considers cash received and repayment timing. Fees deducted upfront increase effective cost even when payments stay unchanged.
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