Sacco Loan Calculator
Work out a monthly instalment on a reducing balance or a flat rate, see the total interest before you commit, and download the full amortisation schedule.
Loan Repayment Calculator
The standard amortised loan. You pay the same amount every month; interest is charged on the outstanding balance, so the interest portion falls and the principal portion grows.
- Principal
- KES 500,000.00
- Total interest
- KES 73,324.17
- Total repayment
- KES 573,324.17
Indicative only. Results exclude processing fees, insurance, excise duty and any Sacco-specific charges, and assume every instalment is paid on time.
Three ways a loan can be priced
The same amount, rate and term can produce very different repayments. This is what each method actually does to a member's pocket.
Reducing balance — equal instalments
The amortised loan most Saccos issue. Interest is charged on what you still owe, so early instalments are mostly interest and later ones mostly principal. The instalment itself never changes.
Reducing balance — equal principal
The same principal is repaid every month plus interest on the outstanding balance. Instalments start higher and fall steadily, and the member pays less total interest than on equal instalments.
Flat rate
Interest is charged on the full original amount for the whole term, then divided evenly. It is easy to quote, but a 12% flat rate over 24 months costs a member roughly 22% on a reducing balance.
Loan calculation questions
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 the interest cost falls every month. On a flat rate loan, interest is charged on the original amount for the entire term regardless of how much you have repaid. For the same quoted percentage, a flat rate loan costs almost twice as much.
Which method do Kenyan Saccos use?+
Most Saccos price loans on a reducing balance, either as equal instalments or as equal principal plus interest. Flat rate is still common on short-term and emergency loans. SaccoWorks supports all three and applies the method configured on each loan product.
What is an amortisation schedule?+
It is the month-by-month breakdown of a loan: the opening balance, the instalment, how much of it clears principal, how much is interest, and the closing balance. Tick Show amortisation schedule to generate one, then download it as CSV.
Does this calculator include fees and insurance?+
No. It calculates principal and interest only. Processing fees, loan insurance, excise duty and any Sacco-specific charges are excluded, so your actual repayment may be higher. Your Sacco's official offer letter is the binding figure.
Can members run this calculation themselves in SaccoWorks?+
Yes. The SaccoWorks member portal includes a loan eligibility and repayment estimator, and loan officers get the same schedule at appraisal, so the figure a member sees matches the figure the Sacco books.
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