Calculate Your Monthly Bond Repayment

When you take out a home loan (bond) to buy property in South Africa, you repay it in equal monthly instalments over an agreed term — usually 20 to 30 years. Each instalment covers two components: interest on the outstanding balance and a portion of the capital (principal). In the early years, the bulk of your payment goes toward interest; over time, the capital portion grows as the balance decreases.

How is my monthly repayment calculated?

Banks use a standard amortisation formula (PMT) that factors in your loan amount, interest rate, and term. This calculator uses the same formula to give you an accurate estimate. The key variables are the amount you borrow (purchase price minus your deposit) and the interest rate your bank offers.

What is the prime lending rate?

The prime lending rate is the benchmark interest rate set by South African banks, currently 11.00%. Most home loan rates are expressed relative to prime — for example, "prime minus 0.5%" means 10.50%. Your rate depends on your credit score, income stability, and the bank's risk assessment.

How do extra payments reduce my loan?

Any amount you pay above the required instalment goes directly toward reducing your outstanding capital. This means less interest accrues in the following month, creating a compounding effect. Even R 500 extra per month can shorten a 20-year loan by several years and save you hundreds of thousands of Rands in interest.

What are initiation fees and service fees?

An initiation fee is a once-off charge by the bank for setting up your home loan, capped by the National Credit Act at approximately R 6,038. You can pay it upfront or add it to your loan (capitalise it). A monthly service fee (typically R 69) is charged for administering your account.

This calculator provides estimates based on the inputs you supply. Your actual repayment will depend on the interest rate and terms offered by your bank. Contact us if you need help budgeting for your property purchase.