diff --git a/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/FinanicalFunctions.java b/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/FinanicalFunctions.java
index 8813b09629..4f6c714efb 100644
--- a/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/FinanicalFunctions.java
+++ b/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/FinanicalFunctions.java
@@ -54,16 +54,21 @@ public final class FinanicalFunctions {
         return payment;
     }
 
+    /**
+     * Returns the closest whole number of payments for the supplied payment amount.
+     */
     public static int nop(final double interestRateFraction, final double emiAmount, final double principal, final double futureValue,
             final boolean type) {
-        double numberOfPayments = 0;
+        final double numberOfPayments;
         if (interestRateFraction == 0) {
-            numberOfPayments = ((Double) (-1 * (futureValue + principal) / emiAmount)).intValue();
+            numberOfPayments = -1 * (futureValue + principal) / emiAmount;
         } else {
             final double r1 = interestRateFraction + 1;
-            numberOfPayments = (futureValue + principal * Math.pow(r1, emiAmount)) * interestRateFraction
-                    / ((type ? r1 : 1) * (1 - Math.pow(r1, emiAmount)));
+            final double adjustedPayment = emiAmount * (type ? r1 : 1);
+            final double growthFactor = (adjustedPayment - interestRateFraction * futureValue)
+                    / (adjustedPayment + interestRateFraction * principal);
+            numberOfPayments = Math.log(growthFactor) / Math.log1p(interestRateFraction);
         }
-        return Double.valueOf(numberOfPayments).intValue();
+        return (int) Math.round(numberOfPayments);
     }
 }
diff --git a/fineract-loan/src/test/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/FinanicalFunctionsTest.java b/fineract-loan/src/test/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/FinanicalFunctionsTest.java
new file mode 100644
index 0000000000..139162065a
--- /dev/null
+++ b/fineract-loan/src/test/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/FinanicalFunctionsTest.java
@@ -0,0 +1,57 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.portfolio.loanaccount.loanschedule.domain;
+
+import static org.junit.jupiter.api.Assertions.assertEquals;
+
+import org.junit.jupiter.api.Test;
+
+class FinanicalFunctionsTest {
+
+    @Test
+    void nopShouldInvertPmtAtZeroInterest() {
+        double payment = FinanicalFunctions.pmt(0, 12, 1000, 0, false);
+
+        assertEquals(12, FinanicalFunctions.nop(0, payment, 1000, 0, false));
+    }
+
+    @Test
+    void nopShouldInvertPmtWithInterest() {
+        double[] rates = { 0.001, 0.01, 0.05 };
+        int[] periods = { 6, 12, 24, 36 };
+        boolean[] paymentTypes = { false, true };
+
+        for (double rate : rates) {
+            for (int period : periods) {
+                for (boolean paymentType : paymentTypes) {
+                    double payment = FinanicalFunctions.pmt(rate, period, 1000, 0, paymentType);
+
+                    assertEquals(period, FinanicalFunctions.nop(rate, payment, 1000, 0, paymentType));
+                }
+            }
+        }
+    }
+
+    @Test
+    void nopShouldInvertPmtForAnnuitiesDueWithFutureValue() {
+        double payment = FinanicalFunctions.pmt(0.01, 12, 1000, 100, true);
+
+        assertEquals(12, FinanicalFunctions.nop(0.01, payment, 1000, 100, true));
+    }
+}