True Ownership Cost Estimator

See how much it really costs to own a home — and how that changes as your bond pays down.

Bond details

Property purchase price

Loan amount

Adjust if different from purchase price minus deposit

Bond interest rate12.50%

Default: prime + 2.00% = 12.50%

720

Bond term

Monthly bond repaymentR 15 338/month

Monthly ownership costs

Rates and taxes?

Levies

Sectional title / estate levy — leave at 0 if freehold

Building insurance?

Auto: R 625/month (0.5% of purchase price/yr)

Maintenance1.25% of property value/yr

Industry standard: 1–2% of property value per year. Older properties typically sit at the higher end.

0.53

Advanced settings

Monthly cost today

R 18 734

Year 1

Monthly cost in 10 yrs

R 19 966

Year 10

Monthly cost at payoff

R 6 571

Year 20

Your bond is paid off in 20 years. After that, your monthly ownership cost drops to R 6 571/month — rates, levies, maintenance, and insurance only.

Key insight — interest vs equity

In your first year, 92% of your bond repayment goes to interest — only 8% builds equity. By year 10, that ratio improves to 71% interest / 29% equity.

Cumulative equity vs cumulative cost — 20 years

Cumulative equity exceeds cumulative money spent at year 20.

Yr	Property	Balance	Total/mo	Interest	Principal	Maint+Ins	Equity/mo
1	R1.57M	R1.33M	R 18 826	R 13 909	R 1 429	R 2 288	R 7 313
5	R1.88M	R1.24M	R 19 276	R 12 987	R 2 351	R 2 738	R 9 392
10	R2.35M	R1.05M	R 19 966	R 10 961	R 4 377	R 3 427	R 13 192
15	R2.94M	R 681 747	R 20 829	R 7 186	R 8 151	R 4 291	R 19 185
20	R3.68M	R 0	R 21 909	R 158	R 15 180	R 5 372	R 28 992

Projections use constant rate assumptions. Rates and taxes, insurance, and maintenance costs will change over time. This is an estimate — not financial advice.

What would you like to do next?

Your numbers are ready to carry over — no re-entering needed.

See how extra payments reduce your total cost →

Stack lump sums and extra monthly payments to see exactly how much interest you save.

Calculate your full bond repayment →

Include transfer duty, FLISP eligibility, and NCA fees in your bond calculation.

About this calculator

Why the true cost matters

Most people think of their bond repayment as their housing cost. In reality, rates, levies, insurance, and maintenance add 20–40% on top. More importantly, in the early years of a high-interest South African bond, over 90% of that repayment is interest — money that doesn't build equity. This calculator makes that split visible year by year.

How the equity split works

Equity built each month has two components: the principal portion of your bond payment (direct debt reduction), and the appreciation of your property value (passive wealth growth). In early years, appreciation is your primary equity driver because principal reduction is tiny. By year 15–20, the principal component dominates as the bond balance shrinks.

The crossover point

The chart shows when cumulative equity built exceeds cumulative money spent. At typical SA assumptions (12.5% bond rate, 4.5% appreciation), this crossover happens near bond payoff — illustrating that property is a long-term wealth vehicle, not a short-term one.

Assumptions applied

Bond repayment uses a standard annuity formula — fixed monthly payment over the full term.
Maintenance cost grows with property value each month, reflecting the 1–2% industry guideline applied to a rising asset.
Building insurance (when auto-calculated) is 0.5% of purchase price per year. Actual insurance is priced on rebuild cost, not market value.
Property appreciation is applied monthly at 1/12 of the annual rate.
The equity component of appreciation is calculated as: property value × (annual appreciation / 12). This is the wealth increase due to market growth each month.

What this calculator doesn't account for

Does not model variable-rate bonds — SA bonds are prime-linked and the rate will change over time.
Rates and taxes are fixed inputs. In practice, municipal valuations change every 4 years and tariffs increase annually.
Does not account for special levies, capital improvements, or estate agent fees on eventual sale.
Maintenance costs are a percentage estimate — major unplanned repairs (geysers, roofs, electrical) are lumpy and unpredictable.