Let's show the home loan calculation as it is different from car loan or others.
Loan Amount : RM 100,000.00
Interest Rate (p.a) : 6.50%
Installment (p.mth) : RM 800.00
The calculation flow of the first month installment
This is the second month of installment calculation,
Then, the subsequent months will be follow with the above formula. When the outstanding loan become ZERO, there is the settlement of loan and total months of repayment is the whole loan tenure.
Hope it gives you a clear picture of how bank charge you on home loan.!