diff --git a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
index 63dea6f726..f7e75768a8 100644
--- a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
+++ b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
@@ -609,6 +609,6 @@ 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['penalty_amount']
+		amounts['payable_amount'] += amounts['penalty_amount']
 
 	return amounts