Bond repayment calculator

What the number means

The instalment is fixed and boring: capital and interest, recalculated every month on the outstanding balance. What surprises people is the shape of it. In year one, on a R1,35 million loan at prime, roughly 88 cents of every rand you pay is interest. The bank is not being greedy in any unusual way — that is simply what 10,75% on a large balance costs before you have paid down much of it.

Which is why extra money early is worth so much more than extra money late. R500 a month extra on that same bond clears it years early and saves a six-figure sum in interest. The calculator above shows both numbers because the second one is the argument.

Rates move. Your instalment moves with them.

Most SA bonds are linked to prime. Prime went from 10,5% to 10,75% on 25 September 2026, which added about R168 a month to a R1 million bond. Two more hikes of the same size would add roughly R340. If your budget only works at today's rate, it does not work — stress-test it before you commit.

Fixed vs variable

A fixed rate buys certainty for a set period, usually three to five years, at the cost of a premium of roughly 0,5% to 1% over the variable rate, plus breakage costs if you sell or settle early. It is insurance, not a saving. Worth it if a 1% rise would put you under; expensive if it would not.

What you will actually pay up front

The deposit is only part of the cash you need. Transfer duty, the conveyancer, bond registration and Deeds Office fees are payable in cash before the property registers in your name. On a R1,5 million purchase that is typically another R60 000 to R80 000 depending on the attorney's tariff. Calculate it here so the number is not a surprise at signing.