calculator
True Cost of Credit Calculator
Shows what a loan really costs once interest, the monthly service fee and the initiation fee are added, so you can compare offers.
R1 151 a month
You repay about R13 807 in total for R10 000 borrowed: R3 807 is the cost of the loan. Before signing, ask for the pre-agreement quote and compare at least two lenders registered with the NCR.
Want help interpreting this? Talk to a person
What you will need
- Amount you want to borrow (R)
- Interest rate per year (%)
- Repayment period (months)
- Once-off initiation fee (R): Check the quote. It may be added to the loan (financed) or paid upfront.
- Is the initiation fee added to the loan? (yes/no)
- Monthly service fee (R)
- Monthly credit life insurance premium (R)
How it works
P = principal + (initiation_fee if finance_initiation == yes else 0); r = annual_rate/100/12; n = term_months. If r == 0: instalment = P/n else instalment = P * r / (1 - (1 + r)^(-n)). monthly_total = instalment + monthly_service_fee + credit_life_monthly. total_repaid = monthly_total * n + (initiation_fee if finance_initiation == no else 0). total_interest = instalment*n - P. total_fees = initiation_fee + monthly_service_fee*n + credit_life_monthly*n. total_cost_of_credit = total_repaid - principal. cost_per_R1 = total_repaid / principal. Reference caps: the National Credit Act regulations cap interest rates, initiation fees and service fees by type of credit. Store the current caps in config (maintained by the content team from the NCR) and, if an input exceeds the cap for the chosen credit type, show: 'This looks higher than the legal maximum. Ask the lender to explain, and check with the NCR.' Mashonisa mode: if the member enters a flat '% per month' (e.g. 30% or 50% interest for one month), convert: annual_equivalent = ((1 + m)^12 - 1) * 100 and show it.
What you get
- Monthly instalment (loan only)
- What you actually pay each month
- Total interest
- Total fees and insurance
- Total you will repay
- You repay this much for every R1 borrowed
What it means
- You would repay at least R1.50 for every R1 borrowed; consider whether you need this loan or a smaller amount.
- One of these costs looks higher than the legal maximum for this type of credit; check with the NCR before signing.
- Fees and insurance add a lot to this loan; compare them across lenders, not just the interest rate.
Next step: Want help interpreting this? Talk to a money coach before you sign.
Runs on the device. Nothing is saved unless the member chooses.