Enter the amount, your lender’s annual rate and the term. The calculator uses the reducing-balance method that banks use for most asset finance.
Car loan vs logbook loan
A car loan finances buying a vehicle, which is used as security. A logbook loan uses a car you already own as security. Rates, fees and insurance requirements differ by lender; ask for the total cost in writing before you sign. If a lender quotes a flat rate, the effective cost is higher than the same reducing-balance rate.
Compare bank rates on our bank loan calculators, and if you are importing, estimate duty with the KRA car import duty calculator.
Frequently asked questions
How is a car loan instalment calculated?
On a reducing balance: instalment = P × r ÷ (1 − (1 + r)^−n), with r the monthly rate and n the number of months.
Is a logbook loan lender regulated?
Check whether the lender is licensed by CBK; digital lenders are listed in CBK’s DCP directory.
More: Bank loan calculators · SACCO loan calculators · Loan affordability calculator · Guides
Sources
- CBK – Directory of Licensed Commercial Banks (July 2026) (checked 13 October 2026)
