R10 000 Loan Repayment Calculator

Calculations Summary

Monthly Payment: 0.00

Loan Amount: 0.00

Total Interest: 0.00

Total Cost of Loan: 0.00

Final Payment: 0.00

How to Calculate R10 000 Loan Repayment

To calculate monthly R10 000 loan payments, use the following formula:

Determine the loan variables:

  • Principal amount (the initial loan amount)
  • Annual interest rate (as a decimal)
  • Loan term in years (the number of years you’ll be repaying the loan)
  • Convert the annual interest rate to a monthly interest rate by dividing it by 12 (the number of months in a year).

Convert the loan term to months by multiplying it by 12.

Use the following formula to calculate the monthly payment (PMT):

PMT = [P * r * (1 + r)^n] / [(1 + r)^n – 1]


PMT = Monthly payment
P = Principal amount
r = Monthly interest rate
n = Total number of months (loan term in years * 12)
Plug the values from steps 2, 3, and 4 into the formula and calculate the monthly payment.

Example of How to Calculate R10 000 Loan Repayment

To calculate the monthly repayment for a loan of R10,000 in South Africa, follow these steps:

Identify the principal amount (P), the annual interest rate (R), and the loan term in months (n).

For your example:

P = R10,000
R = 12% per annum
n = 48 months

Convert the annual interest rate to a monthly rate by dividing by 12, since there are 12 months in a year.

R (monthly) = 12% / 12 = 1% per month or 0.01 in decimal.

Use the fixed instalment formula: M = P * [r(1+r)^n] / [(1+r)^n – 1],


M is the monthly payment, P is the principal loan amount, r is the monthly interest rate, and n is the number of payments (loan term in months).

Plug the values into the formula:

r = 0.01 (monthly interest rate in decimal form)
P = R10,000 (principal amount)
n = 48 (loan term in months)
Calculate (1+r)^n, which is (1+0.01)^48.

Multiply this result by the monthly interest rate, r, and then multiply by the principal, P.

Subtract 1 from (1+r)^n.

Divide the result of step 6 by the result of step 7 to get M, the monthly repayment amount.

The monthly repayment amount for an R10 000 loan at a 12% annual interest rate over a 48-month term is approximately R270.73