Early Settlement Savings Calculator Bank Goodwill Discount (HPAA)

This tool estimates early settlement savings using standard **Flat/Rule‑of‑78** vs **Reducing‑Balance** comparisons and a configurable goodwill fraction. Actual bank formulas may vary once the Hire‑Purchase (Amendment) Act (HPAA) becomes effective (expected Q1 2026).
For background, see Malaysian banking industry announcements and coverage.

⚠️ Estimates only. Contact your bank for official quotations and to confirm eligibility, start date, and any applicable fees.

Flat / Rule‑of‑78 Method

Monthly instalment (flat)–
Total flat interest–
Remaining instalments total–
Rule‑of‑78 interest rebate–
Early settlement (old method)–

Reducing‑Balance (Fair Benchmark)

Implied monthly rate–
Fair remaining principal–
Excess vs fair–
Goodwill discount (assumed)–
Payable after goodwill–

Scenario Explorer

See how the payable amount changes if you settle after different months. Goodwill factor applies uniformly across scenarios.

Settle after month Early settlement (old) RM Fair remaining principal RM Excess vs fair RM Goodwill discount RM Payable after goodwill RM

Formulas used: Flat interest = L × r × (N/12); Monthly instalment (flat) = (L + FlatInterest)/N; Rule‑of‑78 rebate = FlatInterest × [Σ remaining digits / Σ total digits]; Reducing‑balance implied monthly rate solves A = L·x / (1 − (1+x)−N); Fair remaining principal ≈ balance after m payments under reducing‑balance amortization. Goodwill discount = factor × max(Old − Fair, 0).