The monthly cost of a R 3 500 000 bond
The instalment on R 3 500 000 over 20 years at 10.75% is R 35 533.01 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 426 396, of which R 373 704 is interest and only R 52 692 reduces the loan. After five years the balance is still R 3 169 907, 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 3 500 000, 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 35 533.01.
- Total repaid: R 35 533.01 × 240 = R 8 527 923, so interest is R 5 027 923.
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 39 233 | R 3 561 972 | R 7 061 972 |
| 20 years | R 35 533 | R 5 027 923 | R 8 527 923 |
| 25 years | R 33 673 | R 6 601 974 | R 10 101 974 |
| 30 years | R 32 672 | R 8 261 865 | R 11 761 865 |
What a different rate does
If the rate moves one percentage point up, the instalment rises by R 2 397 to R 37 930. If it moves one point down, it falls by R 2 335 to R 33 198. 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 33 198 | R 4 467 542 |
| 10.75% (prime) | R 35 533 | R 5 027 923 |
| 11.75% (prime + 1) | R 37 930 | R 5 603 139 |
Loans near R 3 500 000
| Loan amount | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| R 2 000 000 | R 20 305 | R 2 873 099 | R 4 873 099 |
| R 2 500 000 | R 25 381 | R 3 591 374 | R 6 091 374 |
| R 3 000 000 | R 30 457 | R 4 309 648 | R 7 309 648 |
| R 3 500 000 | R 35 533 | R 5 027 923 | R 8 527 923 |
| R 4 000 000 | R 40 609 | R 5 746 198 | R 9 746 198 |
| R 5 000 000 | R 50 761 | R 7 182 747 | R 12 182 747 |
Borrowing R 500 000 more, up to R 4 000 000, adds R 5 076 to the monthly instalment; borrowing R 500 000 less, down to R 3 000 000, takes R 5 076 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 3 000 000
- Higher: R 4 000 000
- All amounts: Bond repayment