Loan repayment calculator Kenya: reducing balance vs flat rate

Compare the monthly payment and total interest for bank, Sacco and mobile loans.

Loan amount (KES)Interest rate a year (%)Number of monthsLoan type

Monthly payment

Why flat vs reducing matters

On a reducing balance loan, interest falls as you repay. On a flat rate loan, interest is worked out on the original amount for the whole term, so the same quoted rate costs far more. Always ask which one a lender means. Late-paying customers can strain your repayments, so see the overdue invoices cost calculator and prepare a clean pack with our guide to catching up late books.

Common questions

Which is cheaper?

At the same quoted rate, reducing balance is cheaper.

Does this include fees?

No. Add processing and insurance fees separately.

Can I prepay?

Many lenders allow it. Ask about early repayment charges.

Related calculators and guides

Overdue invoices cost calculatorThe real cost of late-paying customers.Profit margin and markup calculatorSet the price that gives the margin you want.Break-even calculatorUnits and sales needed to cover costs.Cost to company calculatorTurn a hiring budget into gross and take-home pay. How to catch up on late books before a KRA review, audit or bank loanGuide · Bookkeeping KRA income tax return deadlines from 2027: April 30, June 30 and January 31Guide · Deadlines

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Estimates for guidance only, not tax advice. Rates were checked in October 2026 and can change. Confirm with KRA or a qualified professional.