Money calculators

Put in your own numbers. These take off the 15% tax on interest and any yearly charge, which almost no calculator does — and over a long plan that difference is large enough to change your mind.

Compound interestWhat savings grow to, after tax and charges
Loan repaymentMonthly payment on a bank or SACCO loan
App loan, true costThe yearly rate a short loan really charges

Compound interest

What a lump sum, or a monthly habit, grows to over time — for a money market fund, a SACCO, a savings account or a pension. It compounds monthly and then takes off the tax and the yearly charge, so the figure is what actually reaches you, not the advertised one.

You start withKESYou add each monthKESRate they advertise% a yearForyearsYearly charge% a yearMost Kenyan money market funds charge about 2%. A bank savings account usually charges a flat monthly fee instead — put 0 here and read the fee on the fact sheet.Take 15% tax off the interestOn in Kenya for savings accounts, deposits and most funds. Turn it off for an infrastructure bond, which is exempt.

You would have: KES 355,284
You put in: KES 300,000
It earned: KES 55,284

What you would haveWhat you put inWhat tax and charges took

What the tax and the charge took

KES 35,128 never reached you.

At 10% with nothing taken out you would have KES 390,412. The charge is taken from the whole balance rather than from the interest, so it compounds against you for as long as you hold the money. Tax took KES 12,758 and charges took KES 17,010.

After	You put in	It is worth
1 year	KES 60,000	KES 62,155
2 years	KES 120,000	KES 128,473
3 years	KES 180,000	KES 199,232
4 years	KES 240,000	KES 274,730
5 years	KES 300,000	KES 355,284

Interest is worked out monthly, which is how these products actually credit it. This assumes the rate holds for the whole period — almost none of them are fixed, and a money market fund quoting 10% today is not promising 10% next year.

Loan repayment

The monthly payment on a bank or SACCO loan, and what the interest adds up to over the whole term. On a reducing balance, which is how these are usually quoted.

You borrowKESInterest rate% a yearOveryears

Every month: KES 13,414
Interest in total: KES 143,860
You repay in all: KES 643,860

On a reducing balance, which is how most bank and SACCO loans are quoted. The interest above is the price of the loan on top of what you borrowed — KES 143,860 to borrow KES 500,000. A flat-rate loan of the same headline rate costs more; ask which one you are being quoted.

What an app loan really charges

App lenders quote a fee on a few weeks, which hides the rate. Put in what you were offered and see it as a yearly figure you can compare to a bank. Works for any lender, including ones not on this board.

You borrowKESYou repay indaysTheir fee% of the loanAny flat feeKESInterest, if they quote one% a yearThe fee is taken before the money reaches meCommon with app loans. It makes the real rate higher, because you are paying for money you never received.

You receive: KES 8,800
It costs you: KES 1,200
You repay: KES 10,000

As a yearly rate

166% a year

A 12% fee on 30 days does not sound like 166%, which is why it is quoted that way. This is the same price said in the units a bank or a SACCO would use, so you can hold the two side by side.

The rate is worked out on what actually reaches you and is not compounded — rolling the loan over repeatedly costs more than this shows. Late fees are extra. If the lender charges anything this form has no box for, the real cost is higher than the figure above.

These are arithmetic, not advice, and they assume the rate holds for the whole period. Almost none of these rates are fixed. See what the plans on this board actually pay.