Loan Calculator
This free personal loan calculator is easy to use and will help you understand the cost of loan applications. Use it to estimate your total loan repayment with interest rates.
Knowing your numbers is crucial to making the right financial decision. I’ve used this calculator to better understand the cost of borrowing money from banks in South Africa.
How the Calculator Works
- Enter the loan amount you wish to apply for. Personal loans typically range between R1,000 to R300,000.
- Enter the maximum interest as indicated by the lender or credit provider of your choice.
- Enter the repayment terms (in months) you want for the loan. Loan terms range from 12 to 60 months.
- Click calculate to see the results.
Current Prime Lending
The South African Reserve Bank has the prime lending currently at 11%.
As a trustworthy loan borrower, it means the banks and other financial institutions should consider giving you loans at that prime rate.
If you have a lower credit score or a riskier financial profile, you may not qualify for prime lending and may instead be offered a subprime loan, which comes with higher interest rates and stricter terms
Understanding the Personal Loan Calculator results
Monthly Payment: This is your estimated monthly installments for the loan amount you’ve entered. If you were expecting a lower monthly installment, you might want to recalculate with a longer repayment term. But there’s a catch: your loan’s accrued total interest will also be higher.
Total Payment: This is the estimated total amount you’ll have to pay back, with interest.
Total Interest: Based on the information you provided on the calculator, this is the total interest you’re going to pay for the loan amount. Borrowers with a good credit score usually pay less interest than someone with bad credit.