Calculator

Loan Repayment Calculator

The honest total cost of a South African personal loan — interest, plus NCA initiation fee, monthly service fee and credit life insurance — built in. Set your inputs and see the full cost of credit instantly.

Updated 11 May 2026 • By James Pretorius • Fact-checked

Personal Loan Calculator

NCA-compliant fees · 2026

Loan amount R20 000

R1kR350k

Term 24 months (2.0 years)

3 mo84 mo

Interest rate (annual) 22.00%

10%NCA max 27.75%

Include credit life insurance (typical for loans > R20k)

Monthly repayment

R1 223 /mo

Capital + interest R1 106 · Service R69 · Credit life R48

Total repayment

R29 342

Total cost of credit

R9 342

Initiation fee

R1 312

Effective annual cost

23.4%

Calculations follow the NCA fee caps in force in 2026: initiation fee R165 + 10% of amount over R1,000 (max R1,312 excl VAT), monthly service fee R69 incl VAT, credit life R4.50/R1,000/month on the average outstanding balance. Your actual lender quote may be lower if they discount fees.

What's actually in your monthly repayment?

Component	Per month	Total over term
Capital + interest	R1 106	R26 535
Initiation fee (financed)	included above	R1 312
Monthly service fee	R69	R1 656
Credit life insurance	R48	R1 151
Total	R1 223	R29 342

Important

This article is for information only and is not financial advice. Borrowing money is a serious commitment — make sure you understand the total cost of credit, including interest, initiation fees, monthly admin fees, and credit life insurance. Only borrow from credit providers registered with the National Credit Regulator (NCR). MoneyToday is not a credit provider and does not arrange loans on your behalf.

Tips for a cheaper loan

· Shorter term = cheaper. A 36-month loan can cost half what a 72-month loan does in total interest, even if the monthly is higher.
· Compare quotes from 3+ NCR-registered lenders. Interest rates vary by 4–6 percentage points between lenders for the same applicant.
· Reject pre-ticked credit life if you have your own. Most banks bundle their own credit life unless you produce alternative cover.
· Pay early if you can. Even one extra repayment per year on a 60-month loan can save you 4–6 months of total cost.

The "low monthly" trap

Lenders push extra-long terms (72 or 84 months) because they make the monthly look manageable. The total cost of credit on a 72-month loan can be more than double a 36-month loan for the same amount. Always compare the total repayment column, not just the monthly.

Frequently asked questions

What's the maximum interest rate on a loan in SA?+

Under the National Credit Act, unsecured personal loans are capped at the SARB repo rate plus 21%. With repo at 6.75%, the maximum is 27.75% per year. Secured loans (home loans, car finance) have their own, much lower caps.

Why is my actual repayment higher than the loan amount × interest rate?+

Every NCA-registered loan adds three things on top of interest: a once-off initiation fee (paid up front or financed into the loan), a monthly service fee (capped at R69 incl VAT), and usually credit life insurance (mandatory for unsecured loans). The "total cost of credit" reflects all of them.

Is credit life insurance compulsory?+

For unsecured loans above R20,000, yes — lenders are required to insure the loan against the borrower's death or disability. The cap is R4.50 per R1,000 of outstanding balance per month for single-life cover. You may use your own policy if it provides equivalent cover.

How accurate is this calculator?+

The maths follows the NCA fee caps in force in 2026: initiation fee R165 plus 10% of the amount above R1,000 (max R1,312 excl VAT), monthly service fee R60 (R69 incl VAT), and credit life at the regulated cap. Your actual lender quote may be lower if they discount fees, but it cannot legally be higher.

Does the calculator handle balloon payments?+

No — use our car finance calculator for balloon-payment scenarios. This calculator is for fully-amortising personal loans where the balance reaches zero at the end of the term.

More tools

All free calculators

Car finance calculator

Hub

All loan guides