Paying even a small amount extra into your bond each month can significantly reduce your loan term and the total interest you pay. Enter your current bond details and an extra monthly amount to see the potential impact.
Assumes the extra payment is made every month for the rest of the loan term, and that your interest rate stays the same.
This calculator estimates the impact of consistently paying in extra each month. Real-world savings will vary if your interest rate changes, or if you skip or change the extra payment amount.
Making extra payments work for you
A few practical tips for getting the most out of extra bond payments.
Even small amounts add up
Because interest is calculated on your outstanding balance, every extra rand you pay reduces the capital amount that future interest is calculated on - so even a modest, consistent extra payment compounds into significant savings over time.
Keep it as an access bond if possible
Many South African home loans are structured as access bonds, letting you withdraw funds you have paid in ahead of schedule. This means extra payments can double as an emergency fund while still reducing the interest you are charged.
Round up your repayment
A simple way to start is to round your monthly repayment up to the nearest hundred or thousand rand. The difference may feel small monthly, but it adds up meaningfully over a 20-year term.
Revisit the numbers when rates change
When your interest rate changes, your required minimum repayment changes too. Recalculate periodically to make sure you know exactly how much "extra" you are still paying in.
Frequently asked questions
Will my bank charge me for paying in extra?
Most South African home loans allow additional payments without penalty, since interest is calculated daily on the reducing balance. However, it is worth confirming with your bank, especially if you have a fixed-rate agreement, which may have different terms.
Should I pay extra into my bond or invest the money elsewhere?
This depends on your bond interest rate compared to the return you could realistically earn elsewhere, after tax. Paying extra into your bond effectively earns you a guaranteed, tax-free "return" equal to your bond interest rate, which is often hard to beat with low-risk investments.
Can I access extra funds I have paid into my bond?
If your home loan is an access bond (sometimes called a flexi-bond), yes - you can usually draw down funds you have paid in ahead of schedule, up to your original loan amount, subject to your bank's terms and a credit check in some cases.
Does a lump sum payment work the same way as extra monthly payments?
A lump sum (for example, from a bonus or inheritance) reduces your outstanding balance immediately, which has a similar effect to several months of extra payments at once. You can approximate this in the calculator by reducing the "outstanding bond balance" by the lump sum amount.
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