MalaysianPF

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Fee to effective rate

Some offers quote a fee instead of an interest rate. Enter the cash you receive, the fee, and the repayment term to see the annual rate it works out to.

Your offer

This assumes the fee is added to what you owe and you make the same payment at the end of each month.

Effective annual rate (EIR)

3.47%

This compares the cash you receive today with the monthly payments you make later.

Monthly payment

RM 168.33

Fee

RM 10.00

Total to repay

RM 1,010.00

Why the rate is higher than the fee

You pay the fee based on the original amount, but you repay the balance over time. The effective rate accounts for both, so it is not just the fee times twelve.