Free Tool · No Signup

Loan Calculator Kenya

Work out your monthly payments, total interest, and full amortization schedule for any loan in Kenya — bank loan, SACCO, mortgage, car, or personal. All calculations are in Kenyan Shillings.

Your loan details

Adjust any field and the results update instantly.

KSh
Total amount you're borrowing
% per year
Typical Kenyan banks: 13–18%, SACCOs: 12–14%
years
KSh
Pay this extra each month to see how much faster you'd finish
Your Results

Payment summary

Monthly payment
KSh 0
Total interest paid
KSh 0
Total amount paid
KSh 0
Loan paid off in
— months

Principal vs interest over time

See how your payments break down month-by-month.

Outstanding balance
Cumulative interest
Cumulative principal

Full amortization schedule

Month Date Payment Principal Interest Balance

How loan calculations work in Kenya

Almost all Kenyan banks and SACCOs use the reducing-balance method for loans. This calculator does too. Each month, interest is charged on whatever you still owe — so as you pay down the principal, the interest portion shrinks and more of your payment goes to the principal.

The formula at work behind this calculator is the standard amortization formula:

Monthly payment = P × (r × (1+r)n) ÷ ((1+r)n − 1)

Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments.

Real-world Kenyan loan examples

Example 1: Small business loan

You take a KSh 1,000,000 working-capital loan from a commercial bank at 16% per year over 4 years.

Monthly payment
KSh 28,340
Total interest
KSh 360,310
Interest as % of loan
36%

Example 2: SACCO loan

You borrow KSh 500,000 from your SACCO at 12% over 3 years.

Monthly payment
KSh 16,607
Total interest
KSh 97,857
Interest as % of loan
19.6%

Three ways to pay less interest

What this calculator doesn't include

To keep it simple, this tool calculates pure loan interest. It doesn't account for:

Always ask your lender for the full effective cost of the loan, often expressed as APR, before signing.

Common questions

How is loan interest calculated in Kenya?

Kenyan banks typically use reducing-balance interest, where interest is calculated on the outstanding loan balance each month. As you pay down the principal, less interest is charged. This calculator uses the standard amortization formula to compute equal monthly payments, splitting each payment between interest (on remaining balance) and principal.

What is a typical interest rate for a loan in Kenya?

As of 2026, commercial bank loan rates in Kenya typically range from 13% to 18% per year, depending on the bank, loan type, and your credit profile. SACCO loans are usually cheaper at 12% to 14%. Mobile loans like Fuliza or KCB M-Pesa carry much higher effective rates when annualized, sometimes above 100% APR.

How can I reduce the interest I pay on a loan?

Three ways: make extra payments each month to reduce the principal faster; choose a shorter loan term where possible; negotiate a lower rate with your lender, especially if you have a good repayment history. Use the early-payoff modeling above to see exactly how much you'd save.

Does this calculator work for KCB, Equity, and SACCO loans?

Yes. The calculator works for any loan that uses the standard reducing-balance method, which is what KCB, Equity, Co-op, NCBA, Stanbic, Absa, and most Kenyan SACCOs use. Enter your loan amount, the rate quoted by your lender, and the term.

Does this calculator handle mortgages and car loans?

Yes. The math is the same for any reducing-balance loan — mortgages, car loans, business loans, and personal loans all work. Just enter the figures from your offer letter. Note that Kenyan mortgage rates currently range from about 12.5% to 16%, while car loans are usually 13% to 17%.

Why is the interest portion of my early payments so high?

This is normal for amortizing loans. Interest is calculated on the outstanding balance, which is largest at the start. As you pay down the principal, the interest portion shrinks and more of each payment goes to principal. The amortization schedule above shows this breakdown for every single month of your loan.

Is this calculator free? Will I be asked for my email?

Completely free. No signup, no email gate, no ads. We make our money by selling more advanced Excel templates for Kenyan businesses — chama trackers, payroll tools, rental income managers. If a calculator helps you, please share the link with anyone you think it might also help.

Need more than a calculator?

Excel templates for the rest of your finances.

We build full Excel templates for Kenyan businesses and households — chama tracking with member statements, KRA-compliant payroll with payslips, rental income management with automatic MRI calculation, and more. One-time purchase, instant download, M-Pesa payment.

Browse templates →
Karatasi Chama Tracker
Contributions, loans, welfare fund — all in one Excel workbook.
Rental Income Tracker
Multi-property tracking with automatic 7.5% MRI calculation.
Payroll Calculator
PAYE, SHA, NSSF, Housing Levy — with per-employee payslips.