Bond Amortisation Calculator
Calculate your bond amortisation schedule based on your loan amount, interest rate, and loan term. This calculator will show you how each payment is split between principal and interest over the life of your bond.
Note: This calculator provides an estimate of your bond amortisation schedule. Actual payments may vary based on specific lender terms and conditions. This calculator assumes a fixed interest rate for the entire loan term.
What Is Bond Amortisation?
Bond amortisation is the process of repaying a home loan through scheduled monthly instalments over a fixed period, usually 20 or 30 years. Each repayment includes two parts:
- Principal: The amount that reduces your outstanding loan balance.
- Interest: The cost of borrowing from your bank or lender.
At the beginning of your bond, a larger share of your payment goes toward interest. As time goes on, more of your payment contributes to the principal, gradually reducing your debt.
Why Use a Bond Amortisation Calculator?
A Bond Amortisation Calculator allows you to see the true cost of your home loan and plan your finances with clarity. It shows:
- How much interest you will pay over the full loan term.
- How each payment affects your loan balance.
- The total cost of your bond at different interest rates.
- How additional payments can reduce your loan term and interest costs.
By using this calculator, you can make informed decisions before applying for a bond or during your repayment period.
Example of How It Works
Suppose you borrow R1,000,000 at an 11% annual interest rate for 20 years.
The calculator will show:
- Your fixed monthly repayment amount.
- A detailed amortisation table showing monthly principal and interest portions.
- The total amount paid over the loan’s lifetime.
This breakdown helps you understand how your bond decreases month by month and how extra payments can accelerate your loan repayment.
How to Pay Off Your Bond Faster
There are several ways to shorten your bond term and save money:
- Make extra payments directly toward your principal.
- Increase your monthly repayment slightly each year.
- Negotiate a lower interest rate when market conditions improve.
- Avoid skipping payments or taking repayment holidays.
Even small additional payments can significantly reduce your total interest over time.
Frequently Asked Questions about Bond Amortisation Calculator
A bond amortisation schedule is a table showing how each monthly payment is divided between principal and interest, and how much balance remains after every payment.
It helps you understand your loan repayment structure, total interest paid, and how extra payments can reduce your loan term and save on interest.
Yes. Extending your bond term lowers your monthly instalments but increases total interest. Shortening it raises instalments but saves on overall costs.
Yes. Extra payments reduce your principal balance faster, lowering interest costs and helping you pay off your home loan sooner.
Your repayment depends on your loan amount, interest rate, repayment term, and whether you make additional payments toward your principal.