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Loan Repayment Basics

Simple Alliance, Kenya Limited


Any business loan you procure constitutes a debt to your business. Normally, loans involve the spreading of fiscal assets over time between you and your lending institution. Basically, you are required to repay the borrowed monies at some later agreed date.  A loan calculator could help you to suitably organise your finances.    

Useful Terms

Some common terminologies you will encounter when handling business loans include:

  • Interest
  • Principal


The amount you borrow from your lender is the principal.


Interest refers to the rate at which your borrowed monies multiply as time goes by. Usually, the interest on your borrowed funds is calculated based on a certain fixed percentage. This computation is done at regular intervals, usually every year. The interest rate is based on prevailing loan amortization schemes.  

Loan Repayment

Normally, the amortising mode of loan repayment is applied. With this formula, the interest is computed based on a fixed percentage figure every time.     

Amortised Loan

This type of loan has programmed episodic interest and principal payments.


As a borrower you benefit from amortised loans by being shielded from payment surprises.    

Repayment Calculator

To integrate efficiency into your business loan repayment and monitoring activities, we have created an automatic repayment calculator for your use.  The loan calculator is in the below section.

Benefits of the Repayment Calculator

The below loan repayment calculator would help you in a number of important ways. It:

  • Helps you to compute the amounts of your loan repayment transactions
  • It helps you to estimate the salary threshold you need so as to repay the loan without a lot of difficulties  


The below loan repayment calculator makes a number of assumptions. These include:

  • Holding that you will repay your loan in equivalent instalments via a typical loan amortisation schedule 
  • Assuming that the interest rate will not change over the loan repayment period 

Using the Loan Repayment Calculator

So as to use the calculator, you need to simply enter the appropriate values in the provided slots.  You then click on the appropriate button, whether you want to determine your instalment amount or the changes you have paid off as at the moment.

Using the repayment calculator, you can make two types of calculations, namely:

  • Extra payments
  • Monthly Payments

Extra Payments

You can use the below loan repayment calculator to compute the effect of additional payments on your loan. You could use various values for the additional payments. To arrive at the relevant figure, click on the Changes Paid-Off Date To button.

Calculate the impact of extra payments using any combination of the inputs below


KES to your monthly payment


KES as an extra yearly payment every


KES as a one time payment in  

 Changes paid-off date to



Monthly Payments

You could use the below loan repayment calculator to compute your monthly payment figures for equity, mortgage, or car loans. You simply enter the relevant values in the suitable slots.   

See the impact of extra payments on your loan and create an amortization table.

Loan amount

KES  (Do not use commas.)

Loan term in years or months

    years or months

Interest rate

    % per year

Loan start date


 Monthly payment



A business loan repayment calculator assists you to determine the monetary amounts of your loan repayment transactions. The loan calculator also helps you to estimate the salary threshold you need so as to repay the loan without a lot of difficulties. The above loan repayment calculators could assist you to make mathematical estimates of aspects such as the monthly and extra payments you are supposed to make on your loan. It is based on loan amortization principles.

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