True Cost (No Rate Given)
Calculate Repayments
Amount per payment
e.g. 365 days
Total You Will Pay
Retail price Extra paid (interest + fees)
Financed Amount
Deposit
Total Installments
Total Paid (incl. deposit)
Extra Over Retail Price
Effective Annual Interest Rate
Nominal APR:  |  Flat rate equivalent:
48% p.a.
12 months
3 months 60 months
Monthly Payment
Retail price Interest paid
Financed Amount
Number of Payments
Total Interest
Total Paid (incl. deposit)
Extra Over Retail Price

Common Phone Financing Plans in Kenya

PlanExampleEffective APR*
M-KOPAKES 50 – 100/day, 365+ days~100–180%
Lipa Mdogo MdogoKES 100–500/week~60–120%
In-shop creditFlat "10–20% charge" per month~18–24%
SACCO/bank personal loan1–1.5%/month reducing~12–18%

*Effective APR calculated using reducing balance method. Actual rates vary by lender.

How to Use This Calculator

I don't know the interest rate — how do I find the true cost?

Use the True Cost tab. Enter the cash price, deposit (if any), and exactly what the lender told you: how much per day/week/month and for how many payments. The calculator reveals the effective annual rate (APR) and total extra you pay over the retail price.

What is the difference between nominal APR and effective APR?

Nominal APR is the simple periodic rate multiplied by the number of periods in a year. Effective APR compounds this — it's the true annual cost. For daily-payment plans, the difference is significant. Effective APR is the more accurate cost measure.

What is the flat rate equivalent?

Flat rate is how some lenders describe their interest — calculated on the original loan amount for every period. It's easier to understand but makes loans look cheaper than they are. A 20% flat rate is roughly equivalent to 36–40% effective APR.

Is lipa pole pole financing worth it?

It depends on your alternatives. If you'd otherwise borrow at 365% from Fuliza, a phone financing plan at 80% APR is better. If you can access a SACCO or bank loan at 12–18%, buying outright is far cheaper. This calculator helps you compare the options numerically.

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