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Loan Repayment Calculator

Estimate your monthly loan repayment, total interest and the total cost of a loan — then see how the first year's payments are split between interest and principal.

By Hiree Editorial · Independent educational publisher · Published 18 August 2026 · Updated 18 August 2026

Your details

Try a fictional example

The estimate uses a fixed interest rate and level monthly repayments. Real loan costs differ — lenders add initiation fees, monthly service fees and credit insurance, and your actual rate depends on your credit profile, within National Credit Act limits.

Monthly repayment

R 2 709,27

Total interest

R 400 224,80

Total repaid

R 650 224,80

How your first 12 repayments break down

MonthPaymentInterestPrincipalBalance
1R 2 709,27R 2 447,92R 261,35R 249 738,65
2R 2 709,27R 2 445,36R 263,91R 249 474,74
3R 2 709,27R 2 442,77R 266,49R 249 208,24
4R 2 709,27R 2 440,16R 269,10R 248 939,14
5R 2 709,27R 2 437,53R 271,74R 248 667,40
6R 2 709,27R 2 434,87R 274,40R 248 393,00
7R 2 709,27R 2 432,18R 277,09R 248 115,92
8R 2 709,27R 2 429,47R 279,80R 247 836,12
9R 2 709,27R 2 426,73R 282,54R 247 553,58
10R 2 709,27R 2 423,96R 285,31R 247 268,27
11R 2 709,27R 2 421,17R 288,10R 246 980,17
12R 2 709,27R 2 418,35R 290,92R 246 689,25

Over 240 months (20 years), you'd repay R 650 224,80 — of which R 400 224,80 is interest. The final payment may differ by a few cents so the balance lands exactly at zero.

Please note: this calculator provides an estimate for illustrative purposes only. It is not financial, legal or tax advice, and it does not replace the official SARS calculators or guidance from a qualified professional. Tax rules, rates and thresholds change each year — always verify against the latest SARS tables.

How the calculation works

This calculator uses the standard amortising-loan formula: the interest rate is divided by 12 to get a monthly rate, and every repayment is the same amount — part interest, part principal — until the balance reaches zero.

Worked example. A R250,000 loan at 11.75% p.a. over 20 years repays at R2,709.27 per month. The first payment is R2,447.92 interest and just R261.35 of principal — interest always comes first. Over the full term you repay R650,224.80 in total, of which R400,224.80 is interest.

The formula is the same one banks and spreadsheet PMT functions use for level-repayment loans. Want to do it by hand? Read our guide to calculating loan repayments.

Assumptions

This calculator assumes:

  • A fixed interest rate for the entire term — no prime-linked increases or decreases.
  • Level monthly repayments (amortising), with interest charged on the declining balance.
  • The quoted rate is the only cost — no initiation fees, service fees, credit insurance or penalties.
  • The annual rate is divided by 12 for monthly interest, and all amounts are rounded to cents.

Important limitations

  • This is a mathematical estimate, not a lender's quote. South African lenders can add initiation fees, monthly service fees and credit insurance, and your personal rate depends on your credit profile. The National Credit Act caps interest (unsecured credit at repo + 21% p.a., for example) and limits these fees — but every lender's actual cost breakdown is different.
  • Most personal loan rates are not fixed for the full term. Vehicle finance and many personal loans quote "prime plus" rates that move when the SARB moves the repo rate.
  • Settling early usually costs less interest — but check for fees. Some agreements charge early-settlement or penalty fees that change the total.
  • Hiree is not a lender, credit provider or financial adviser. We don't offer loans and we don't approve credit. Use this tool to plan and compare; get your actual figures from the lender's written quote.

Frequently asked questions

Why doesn't this match the repayment my lender quoted?

Three reasons: your actual rate may differ from the one you typed in (lenders quote based on your credit profile), lenders add fees that sit outside interest (initiation fees, monthly service fees, credit insurance), and some agreements don't amortise with level payments. Compare the calculator's number to the quote's interest and principal lines, then add the fee lines to see where the difference comes from.

What is the maximum interest rate a lender can charge in South Africa?

Under the National Credit Act, the maximum is the SARB repo rate plus a margin set by credit type — for example 21% for unsecured credit transactions, 14% for credit facilities and 12% for mortgage agreements. With the repo rate at 7.00% (from May 2026), unsecured credit is capped at about 28% p.a. The cap is fixed when the agreement is signed, and initiation and service fees are capped separately.

What is the in duplum rule?

The in duplum rule (National Credit Act s 103(5)) means that once you default, the interest, fees and other charges on the debt may not grow past the unpaid principal balance — so a R50,000 debt in default can never accrue more than R50,000 of charges. It caps how much a default can cost; it's not a reason to stop paying.

What's the difference between interest and fees?

Interest is the price of borrowing — a percentage of what you owe, charged for the time the money is outstanding. Fees are fixed charges for the lender's costs: an initiation fee when the loan is set up, a monthly service fee while it runs, and credit insurance premiums. Both are regulated, and both add to what you repay — that's why the calculator's total is lower than a real lender's full cost.