Loan affordability checker and schedule

What the loan affordability checker and schedule does

Before you borrow, find out what the loan will really do to your cash. Enter your income, costs, existing repayments and the loan amount, rate and term, and the checker works out the monthly payment, the total repaid and the interest, the share of your income that repayments take and a plain verdict, with a month-by-month schedule showing interest, principal and balance.

Who it is for

Business owners and individuals considering a bank, SACCO or mobile loan, and the accountants and advisers who help them decide how much to borrow.

How to use the workbook

1. Enter your monthly net income, other costs and existing loan repayments.
2. Enter the loan amount, the yearly interest rate and the term in months.
3. Read the monthly payment, the total interest and the verdict.
4. Open the Schedule sheet to see the balance fall month by month.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Monthly payment from amount, rate and term
• Total repaid and total interest
• Repayments as a share of income and a plain verdict
• Money left after all costs
• Month-by-month schedule up to 60 months

The workbook has these sheets: Instructions, Check, Schedule. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Ask the lender for the full cost, including fees and insurance.
• Keep total repayments below about a third of your income if you can.
• A longer term lowers the payment but raises the interest.
• Compare at least two lenders before you sign.

Why keep this record

Running a business on memory works until it grows. Writing the numbers down turns opinions into facts you can compare month to month, and shows early which products, customers or costs deserve attention. Even a simple workbook, used every week, usually beats a sophisticated one that is opened once a year.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

A plan is only as good as the numbers you put in. Start with honest estimates, update the workbook as real figures arrive, and compare the two so your next estimate is better. Save a dated copy each month so you can see how your thinking changed.

Read how to build a cash flow forecast for the wider picture. See more business templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Guide: How to build a 12-month cash flow forecast for a small business
• Guide: How to price your products and services: markup, margin and break-even
• Guide: Turnover tax for small businesses in Kenya: rate, limits and when to use it
• Another template: 12-month cash flow forecast
• Another template: Break-even and pricing calculator
• Another template: Budget versus actual tracker

Need something different? Request a custom template, browse all guides or see every Excel template.