Personal Loan
The repayment is the easy part. The fees are where it gets sneaky.
Punch in the loan terms and see what it actually costs you, fees included.
- Loan Amount
- R 50 000
- Interest Rate
- 24% per year
- Term
- 36 months
- Monthly Instalment
- R 1 962
- Total Repaid
- R 70 619
- Total Interest
- R 20 619
- Total Fees
- R 3 692
- Total Cost of Borrowing
- R 24 311
Reasonable, as far as personal loans go. The fees aren't doing too much damage.
Outstanding balance over time
How personal loan costs are calculated
Your monthly instalment is calculated the same way as a bond repayment: the loan amount, interest rate, and term combine into an equal monthly payment, with more of each instalment going to interest early on and more to capital later. Personal loans just usually charge a higher rate over a shorter term, since they're unsecured.
On top of interest, lenders typically charge a once-off initiation fee (deducted up front or added to the loan) and a monthly service fee for the life of the loan. Both are required disclosures under the National Credit Act, but they're easy to skim past when you're just looking at the monthly instalment number.
This calculator adds the initiation fee and all monthly service fees to the interest charged, so 'total cost of borrowing' reflects everything you'll actually pay above the amount you borrowed, not just the interest line.
Add an extra monthly payment or a once-off lump sum above and this calculator shows you what that does directly: how many months and how much interest you'd cut by paying more than the minimum.
Results are for illustration only and do not constitute financial advice. Consult a qualified financial adviser before making decisions based on these figures.
A worked example
Say you borrow R80,000 over 36 months at 24% interest, with a R1,200 initiation fee and a R69 monthly service fee. The instalment on interest and capital alone comes to roughly R3,150 a month. Add the service fee and the total monthly cost is closer to R3,220, with total interest over the 3 years landing around R33,400. Add the once-off initiation fee and the total cost of borrowing is close to R35,000 on top of the R80,000 you borrowed.
Now add a R500 extra monthly payment from month one. The loan gets paid off around 6 months early, and total interest drops by roughly R4,800, a meaningful saving given how much higher personal loan rates run compared to a bond.
Enter your own loan amount, rate, term, and fees above to see your specific instalment and total cost, then try an extra payment to see what it saves you.
This assumes your interest rate and fees stay fixed for the whole term. It doesn't include credit life insurance, which many lenders bundle in, or any early-settlement penalty your specific agreement might charge.
Results are for illustrative purposes only and do not constitute financial advice.
Frequently asked questions
How is a personal loan instalment calculated?
Your monthly instalment comes from the loan amount, the interest rate, and the term in months, spread into equal payments using the standard amortization formula. It's the same maths used for a bond, just usually at a higher rate over a shorter term since personal loans are unsecured.
What's included in the total cost of borrowing?
This calculator adds total interest, the once-off initiation fee, and every monthly service fee charged over the term, so 'total cost of borrowing' reflects everything you'll pay above the amount you borrowed, not just the interest line on its own.
Why do personal loans have higher interest rates than bonds?
Personal loans are unsecured, meaning there's no asset like a property backing the loan for the lender to recover if you default. That extra risk is why personal loan rates typically run well above bond rates, often into the 20s percent, even for borrowers with good credit.
Are initiation and service fees required disclosures?
Yes. In South Africa, the once-off initiation fee and the monthly service fee are required disclosures under the National Credit Act, and both are capped by regulation. Your loan agreement should state both fees clearly; this calculator lets you enter your actual quoted amounts to see their real effect on total cost.
How much can extra payments save on a personal loan?
Because personal loan rates run higher than most other consumer debt, even a modest extra monthly payment or lump sum can cut a meaningful chunk off both the term and the total interest. Add an extra payment or lump sum above to see the exact saving for your loan amount, rate, and term.
These results are for illustration only and are not financial advice — always consult a qualified financial professional before making financial decisions.