Loan repayment calculator
See your monthly repayment, total interest and how your balance falls each year, for any loan on a reducing-balance rate.
Year-by-year breakdown
How loan repayments are worked out
Most Kenyan banks and SACCOs charge interest on a reducing balance: each month you pay interest only on what you still owe, so early repayments are mostly interest and later ones mostly principal. This calculator uses that method.
Some lenders quote a flat rate, charging interest on the full amount for the whole term. A flat rate of 10% costs roughly the same as a reducing-balance rate of about 18%, so always ask which one you are being quoted. Remember to add processing fees, insurance and excise duty to compare the full cost.
Common questions
What is the difference between flat and reducing balance interest?
Flat interest is charged on the original loan amount for the whole period. Reducing-balance interest is charged only on what you still owe, so it costs less for the same quoted rate.
Do mobile loan apps use the same method?
Many mobile loans charge a fee per month or per 30 days. A 7% monthly fee is far more expensive than a 15% yearly rate. Convert monthly rates to yearly before comparing.
Can I pay off a loan early?
Usually yes, but some lenders charge an early repayment fee. Check your loan agreement before you pay extra.
This calculator gives an estimate to help you plan. It is not financial advice; confirm figures with your bank, lender or KRA.