How much do extra bond payments save? (prime 10,75%)
Figures for the 2026/27 tax year. Prime rate checked 9 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
Every extra rand you pay into your bond goes straight to the capital, so you stop paying interest on it for the rest of the loan. Small amounts make a big difference over 20 years.
What extra payments save on a R 1 500 000 bond
At prime (10,75%) over 20 years, the repayment is R 15 228 a month and total interest is R 2 154 824.
| Extra each month | Interest saved | Paid off sooner by |
|---|---|---|
| R 500 | R 257 259 | 1 year 11 months |
| R 1 000 | R 451 519 | 3 years 6 months |
| R 2 000 | R 730 201 | 5 years 10 months |
| R 5 000 | R 1 179 108 | 9 years 9 months |
Why it works so well
In the early years most of each repayment is interest. An extra payment skips that: it reduces the balance directly, and every later month's interest is charged on a smaller balance. That's why R 1 000 a month, R 240 000 over 20 years at most, saves about R 451 519 in interest.
Keep it flexible
Most South African banks let you draw back extra payments through an access facility, so the money can double as an emergency fund while it saves you interest at your bond rate. Check your bond's terms first. A lump sum, such as part of a bonus, works the same way.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
See what extra payments save on your bond