diff --git a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
index ce50dd3b38d..6159275c5d1 100644
--- a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
+++ b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
@@ -747,5 +747,8 @@ def calculate_amounts(against_loan, posting_date, payment_type=""):
 		amounts["payable_principal_amount"] = amounts["pending_principal_amount"]
 		amounts["interest_amount"] += amounts["unaccrued_interest"]
 		amounts["payable_amount"] = amounts["payable_principal_amount"] + amounts["interest_amount"]
+		amounts["payable_amount"] = (
+			amounts["payable_principal_amount"] + amounts["interest_amount"] + amounts["penalty_amount"]
+		)
 
 	return amounts