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Microfinance Loan Interest Calculator

Work out microfinance loan interest instantly with clear inputs, formula shown and shareable results.

About Microfinance Loan Interest Calculator

Microfinance loans are repaid in small weekly instalments with interest usually quoted flat on the original amount. Because principal falls each week, the effective annual rate on the declining balance is substantially higher than the quoted figure.

Formula

Weekly instalment

Total = A(1 + flat × weeks/52); Weekly = Total / weeks

Worked example

With the default values below, Microfinance Loan Interest Calculator returns Weekly Instalment of $938.46. Change any input above and every figure here is recalculated in your browser.

Inputs used

Loan Amountminimum 0
40,000
Annual Flat Rateaccepts 0–60 %
18 %
Repayment Weeksaccepts 4–156
50

Results

Weekly Instalment
$938.46
Total Interest
$6,923.08
Total Repayment
$46,923.08
Effective Annual Rate
33.536%

Step by step

  1. 1Values used
  2. 2Weekly instalment
  3. 3Weekly Instalment= 938.46
  4. 4Total Interest= 6,923.08
  5. 5Total Repayment= 46,923.08
  6. 6Effective Annual Rate= 33.536

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

Why are microfinance rates higher than bank rates?

Tiny loan sizes and doorstep collection make servicing costs per account high relative to the amount lent.

What does the effective rate tell me?

The comparable rate against any bank or card quote, computed from the actual instalment stream.

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