# Bond Repayment Calculator Johannesburg

Calculation Summary
Category Loan Term
Monthly Payment
Loan Amount
Total Interest
Total Cost of Loan

## How To Calculate Your Home Loan Repayment in Johannesburg

In calculating your home loan repayment you need to understand the loan amount, interest rate, and loan term.

Let’s explore a method to compute this with an example.

Step 1: Determine Loan Details

First, establish the principal amount, the interest rate per annum, and the number of years for the loan.

For this example, imagine you have taken out a loan of R1,000,000 at an interest rate of 7% per annum for a period of 20 years.

Step 2: Monthly Interest Rate

Convert the annual interest rate to a monthly rate. Divide the annual rate by 12 (the number of months in a year). Monthly rate = 7% / 12 = 0.5833%

Step 3: Total Loan Payments

Calculate the monthly payments you will make over the loan term. Multiply the number of years by 12.

Total payments = 20 years * 12 months/year = 240 payments

Step 4: Monthly Repayment Formula

Use the formula for an annuity to calculate the monthly payment. The formula is: P = [rPV] / [1 – (1 + r)^-n] Where:

• P is the monthly payment
• r is the monthly interest rate (as a decimal)
• PV is the present value or principal amount of the loan
• n is the total number of payments

Step 5: Apply the Formula

Insert the values into the formula.

P = [0.005833 * 1,000,000] / [1 – (1 + 0.005833)^-240]
P = 5,833 / [1 – (1 + 0.005833)^-240]
P = 5,833 / [1 – (1.005833)^-240]
P = 5,833 / [1 – 0.3025]
P = 5,833 / 0.6975 P = 8,363.64

So, your monthly repayment would be approximately R8,363.64.

Step 6: Confirm with an Amortization Schedule

An amortization schedule can provide a detailed breakdown of each payment, showing how much goes towards the interest and how much towards the principal balance.

Step 7: Adjust for Other Fees

Remember to include any additional fees (like origination fees, insurance, and property taxes) that might be part of your monthly housing payment.

Step 8: Double-check with a Mortgage Calculator

Use an online mortgage calculator specific to South Africa for verification.

Input the same details to confirm the calculation.

Example Summary

You borrow R1,000,000 at a 7% yearly interest rate to be paid over 20 years.

Monthly installments come to approximately R8,363.64, excluding any additional fees.

It’s advisable to use an amortization schedule for a payment breakdown and confirm with an online calculator.