How it works
Each month, interest is charged on the balance at your annual rate ÷ 12. Your payment (less any service fee) pays the interest first and the rest reduces the debt. The calculator repeats this until the balance reaches zero.
Monthly interest = balance × rate ÷ 12 New balance = balance + interest − (payment − fee)
If the payment after fees is less than the first month’s interest, the debt can never be repaid — the calculator warns you.
Worked examples
R50 000 at 20% paying R2 000 a month
The debt takes about two years and nine months to clear and costs about R15 200 in interest.
The same debt with R500 extra a month
An extra R500 a month clears it much sooner and cuts the interest substantially.
Paying R500 extra a month
- Debt-free by
- 5 December 2028
- Time saved
- 8 months
- Interest and fees saved
- R3 890.68
Frequently asked questions
Which debt should I pay off first?
Mathematically, the debt with the highest interest rate (the “avalanche” method). Some people prefer to clear the smallest balance first for motivation (the “snowball” method). Either way, keep paying at least the minimum on everything.
What if I can’t afford my payments?
Speak to your creditors early. If you are over-indebted, a registered debt counsellor can help restructure your debt under the National Credit Act.