Loan & EMI calculator

With a reducing-balance loan, interest is charged on the remaining balance, so interest decreases as you pay. With flat-rate interest, interest is calculated on the full original amount for the whole period, which usually means a higher true cost. Always ask which method the lender uses.

The calculator estimates interest only. Kenyan lenders usually add facility fees, insurance, excise duty, and penalties, and some quote flat rates. Ask for the full breakdown - total cost, all fees, and the effective annual rate - before you sign.

Keep total debt payments within a sensible share of your income - a common guideline is under a third of reliable monthly income - and check your cash flow for the months the instalment falls due. Affordability is about timing, not just the amount.

Often yes, but check for early-repayment penalties and how the lender applies early payments. Some apply them to interest first, which defeats the purpose. Ask, then use the calculator to see how a shorter period or extra payment changes total interest.

Three inputs: the loan amount you want to borrow (the principal), the annual interest rate in percent, and the repayment period in months. From these the calculator estimates the monthly instalment, the total repaid, and the total interest for the whole loan.

The annual interest rate is converted to a monthly rate by dividing by 1200. An annual rate of 18% becomes 1.5% per month (18 divided by 12, expressed as a decimal). That monthly rate drives the whole EMI calculation in the tool.

Total repaid is the monthly instalment multiplied by the number of months - everything you hand back over the loan's life. Total interest is that figure minus the original loan amount, so it is the pure cost of borrowing before any fees are added.

A shorter period raises the monthly instalment because the same principal is squeezed into fewer months, but it lowers the total interest because the balance is paid down faster. Try changing the months in the calculator to see the trade-off for your exact numbers.

The tool estimates interest only and says so clearly. Kenyan lenders commonly add facility fees, insurance, excise duty, and penalties on top, so the real total is higher. Ask for the full breakdown and the effective annual rate before signing anything.