Amortisation

How do I use the BetterBond amortisation calculator?

An amortisation calculator helps you see how your home loan repayments are structured, specifically which portion goes towards interest versus reducing the capital amount. It’s a great way to understand your loan in detail and visualise how your debt decreases over time.

Calculate and explore in six easy steps:

1. 1.Enter the total loan amount (bond amount): this is the total amount you expect to borrow. For example, if your purchase price is R1,000,000 and your deposit is R100,000, your bond amount is R900,000.
2. 2.Number of months of loan: how many months you’ve chosen to pay off your loan. The default is 240 months (20 years).
3. 3.Enter the interest rate: use the quoted rate from your bank or originator. If in doubt, use the rate you’ve been given or the bank’s advertised rate.
4. 4.Enter the fixed term (in months).
5. 5.Enter the fixed interest rate.
6. 6.Click Calculate. The calculator will generate results including:
   • A total interest paid figure: how much you’ll pay in interest over the full term.
   • A schedule showing how much of each payment goes to interest and how much reduces your capital balance.

Pro tip: Experiment with different inputs by changing one parameter at a time (interest rate, term or loan amount) to see how your capital-reduction and interest portions shift. This helps you understand how reducing the term or negotiating a lower rate will accelerate capital repayment and reduce total interest.