About this calculator
Formula: M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)
A bond repayment calculator helps you estimate the monthly instalment on a South African home loan before you apply. By entering the property price, your deposit, the interest rate offered by your bank and the loan term, you can immediately see what your monthly bond will cost and how much interest you will pay over the full term.
We use the standard amortisation formula M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan amount (price minus deposit), r is the monthly interest rate (annual rate ÷ 12) and n is the number of months (years × 12). The result is the equal monthly payment that pays both interest and capital, leaving the loan fully settled at the end of the term.
Most South African banks price home loans relative to the prime lending rate, which is currently around 11.75%. A higher deposit lowers the loan amount, the monthly payment and the total interest. Note that the figure shown here does not include monthly admin fees, life cover, homeowner's insurance, attorney fees or transfer duty — use our Transfer Duty Calculator to estimate those upfront costs.
How to use it
- 1Enter the property price. Type the agreed purchase price of the property in Rand.
- 2Enter your deposit. Add the cash deposit you intend to put down. The loan amount is the price minus the deposit.
- 3Enter the interest rate. Use the rate offered by your bank, or the South African prime rate as a default.
- 4Choose the loan term. Most South African bonds run for 20 years. Shorter terms cost less interest but raise the monthly payment.
- 5Read the monthly repayment. The result updates instantly and also shows total interest and total repaid.