The monthly cost of a R 1 250 000 bond
The instalment on R 1 250 000 over 20 years at 10.75% is R 12 690.36 a month. We use the prime lending rate of 10.75%, in force since 25 September 2026, as an example only. Your own rate depends on your bank, your deposit and your credit record.
Early payments are mostly interest. In the first year you pay R 152 284, of which R 133 466 is interest and only R 18 819 reduces the loan. After five years the balance is still R 1 132 110, or 91% of the original loan. In total you pay 1.44 times the loan amount in interest over 20 years.
How it is worked out
- Loan amount: R 1 250 000, with no deposit taken off. If you pay a deposit, the loan is smaller than the price.
- Monthly rate: 10.75% a year ÷ 12 = 0.8958% a month.
- Number of payments: 20 years × 12 = 240.
- Instalment: the level payment that clears the loan after 240 payments is R 12 690.36.
- Total repaid: R 12 690.36 × 240 = R 3 045 687, so interest is R 1 795 687.
What a different term does
A shorter term means a higher instalment but much less interest. A longer term lowers the instalment and raises the interest you pay in total.
| Term | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| 15 years | R 14 012 | R 1 272 133 | R 2 522 133 |
| 20 years | R 12 690 | R 1 795 687 | R 3 045 687 |
| 25 years | R 12 026 | R 2 357 848 | R 3 607 848 |
| 30 years | R 11 669 | R 2 950 666 | R 4 200 666 |
What a different rate does
If the rate moves one percentage point up, the instalment rises by R 856 to R 13 546. If it moves one point down, it falls by R 834 to R 11 856. Most home loans are linked to prime, so the instalment changes when the repo rate and prime change.
| Rate | Monthly instalment | Total interest |
|---|---|---|
| 9.75% (prime − 1) | R 11 856 | R 1 595 551 |
| 10.75% (prime) | R 12 690 | R 1 795 687 |
| 11.75% (prime + 1) | R 13 546 | R 2 001 121 |
Loans near R 1 250 000
| Loan amount | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| R 500 000 | R 5 076 | R 718 275 | R 1 218 275 |
| R 750 000 | R 7 614 | R 1 077 412 | R 1 827 412 |
| R 1 000 000 | R 10 152 | R 1 436 549 | R 2 436 549 |
| R 1 250 000 | R 12 690 | R 1 795 687 | R 3 045 687 |
| R 1 500 000 | R 15 228 | R 2 154 824 | R 3 654 824 |
| R 1 750 000 | R 17 767 | R 2 513 962 | R 4 263 962 |
| R 2 000 000 | R 20 305 | R 2 873 099 | R 4 873 099 |
Borrowing R 250 000 more, up to R 1 500 000, adds R 2 538 to the monthly instalment; borrowing R 250 000 less, down to R 1 000 000, takes R 2 538 off it.
Assumptions
- Interest at 10.75% a year, compounded monthly, over 20 years. This is an example rate, not an offer.
- The whole amount is borrowed: no deposit, no extra payments and no lump sums.
- Bank initiation fees, monthly service fees and home loan insurance are not included. They add to the real monthly cost.
- A fixed instalment is shown. If your rate floats, the instalment changes when the rate does.
Work it out for your own numbers
This page uses fixed example inputs. To change the figures, use the full bond repayment calculator. It recalculates as you type and nothing you enter leaves your browser.
More amounts
- Lower: R 1 000 000
- Higher: R 1 500 000
- All amounts: Bond repayment