Loan Repayment Calculator (Kenya, 2026)
By Nash Thuo · Updated June 2026
Before you sign for a loan, see exactly what it will cost. Enter the amount, the interest rate and the term to get your monthly instalment and the total interest you will pay.
Work out your loan repayment
Work out your monthly repayment and the total interest on a reducing-balance loan in Kenya.
Before you borrow, check whether an emergency fund could cover it instead. Money in a money market fund earning ~9% means your next emergency need not become a loan.
This assumes a reducing-balance loan with equal monthly instalments. Many mobile loan apps instead charge a one-off flat fee (for example 'pay 7.5% once'), not an annual rate, so use this for bank, sacco, car or mortgage loans. Always confirm the exact figures with your lender.
How loan repayments work
Most Kenyan bank, sacco, car and mortgage loans use reducing balance: interest is charged only on the amount you still owe, so the interest portion of each instalment shrinks over time while the principal portion grows. The instalment itself stays the same each month.
Reducing balance vs flat rate: the trap
A lender quoting a low flat rate can still be more expensive than one quoting a higher reducing rate. Flat rate charges interest on the full original amount for the whole term, even the part you have already repaid. Always ask for the reducing-balance equivalent, or compare the total repaid figure, not just the rate.
The cheapest loan is the one you do not take
Interest is the price of not having saved first. Building an emergency fund in a money market fund earning around 9% a year means your next car repair, medical bill or school fees need not become a loan with interest on top. Even the interest this calculator shows you on one loan, saved instead, compounds in your favour.
Frequently Asked Questions
How is a loan repayment calculated in Kenya?
For a reducing-balance loan, the monthly instalment is the loan amount times the monthly rate, divided by one minus (one plus the monthly rate) to the power of minus the number of months. The monthly rate is the annual rate divided by 12. Each instalment pays the interest on the outstanding balance first, then reduces the principal.
What is the monthly payment on a KES 500,000 loan at 14% for 5 years?
On a reducing-balance loan of KES 500,000 at 14% a year over 5 years (60 months), the monthly repayment is about KES 11,634, and you repay roughly KES 698,000 in total, of which about KES 198,000 is interest.
What is the difference between reducing balance and flat rate?
On a reducing-balance loan, interest is charged only on the amount you still owe, so it falls as you repay. On a flat-rate loan, interest is charged on the full original amount for the whole term, which makes the true cost much higher than the quoted rate. Most Kenyan bank, sacco and car loans use reducing balance; many mobile loan apps use a one-off flat fee.
Do mobile loan apps use this calculator?
Not exactly. Apps like Tala, Branch and M-Shwari usually charge a one-off facility fee (for example 7.5% once) rather than an annual interest rate, so this calculator is best for bank, sacco, car and mortgage loans. For app loans, take the fee as a flat cost on the amount borrowed.
Is this loan calculator free?
Yes, it is completely free, has no ads, and nothing you type is stored. It works on your phone or computer.