The same budget, two possible paths Calculated regular bond payment: R 9 983,80 / month. Both paths use R 11 983,80 / month in total.
After either bond is paid off, its entire monthly budget goes into investments. Figures are nominal rand after 20.0 years, before tax.
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Bond versus investment comparison At the comparison date Pay extra into bond Invest the extra Investment balance R 1 463 558,50 R 1 178 040,83 Bond still owed R 0,00 R 0,00 Total bond interest paid R 801 855,66 R 1 396 111,73 Investments minus remaining debt R 1 463 558,50 R 1 178 040,83 Bond paid off Month 151 (12.6 years) Month 240 (20.0 years)
How the comparison works The regular payment amortises the starting bond over its remaining term. Interest and investment growth use the annual rate divided by 12, applied monthly, with payments and contributions at month-end. Rates stay constant. The final partial repayment leaves the rest of that month’s budget available to invest.
Investment returns are assumed after fees, before tax, and are not guaranteed. Tax, inflation, bond charges, early repayment penalties and access-bond rules are excluded. Property value is left out because it is the same in both paths; the net figure is not your total net worth. This is not a tax-aware financial plan.
Consider emergency cash, access to your money and your lender’s terms alongside these numbers. Review important decisions with a qualified financial adviser. Projections are estimates, not financial advice.
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