Compound Interest Calculator Johannesburg

Compound Interest Calculator for Johannesburg

Savings accounts and deposits in Johannesburg are priced off the South African Reserve Bank policy rate, which stood at 7.25% at the end of September 2026. National consumer price inflation was 4.55% in September 2026, so a saver earning exactly the policy rate would have a real return of 2.59% a year before tax.

Facts that change the answer

• South African Reserve Bank policy rate: 7.25% (September 2026, BIS series)
• Annual CPI inflation: 4.55% (September 2026)
• Real return at the policy rate: 2.59% per year (computed as (1 + 7.25%) / (1 + 4.55%) minus 1)
• Policy rate at each December: 2016 7%, 2017 6.75%, 2018 6.75%, 2019 6.5%, 2020 3.5%, 2021 3.75%, 2022 7%, 2023 8.25%, 2024 7.75%, 2025 6.75%
• Policy rate moves since January 2020 (month-end data): January 2020 6.5% to 6.25%; March 2020 6.25% to 5.25%; April 2020 5.25% to 4.25%; May 2020 4.25% to 3.75%; July 2020 3.75% to 3.5%; November 2021 3.5% to 3.75%; January 2022 3.75% to 4%; March 2022 4% to 4.25%; May 2022 4.25% to 4.75%; July 2022 4.75% to 5.5%; September 2022 5.5% to 6.25%; November 2022 6.25% to 7%; January 2023 7% to 7.25%; March 2023 7.25% to 7.75%; May 2023 7.75% to 8.25%; September 2024 8.25% to 8%; November 2024 8% to 7.75%; January 2025 7.75% to 7.5%; May 2025 7.5% to 7.25%; August 2025 7.25% to 7%; November 2025 7% to 6.75%; May 2026 6.75% to 7%; September 2026 7% to 7.25%
• In 9 of the last 10 years the December policy rate was above that year's average inflation

Worked example for Johannesburg

Start with ZAR 100,000, add ZAR 1,000 a month and use 7.25% compounded monthly. After 10 years you would have ZAR 381,510 from ZAR 220,000 of deposits; after 20 years ZAR 961,486 from ZAR 340,000. These amounts in South African rand are only examples; real deposit rates offered by banks in Johannesburg are usually below or above the policy rate depending on the term and the bank.

To see what that balance is worth in today's money, take inflation into account: at 4.55% a year, ZAR 381,510 in ten years has the buying power of about ZAR 244,599 now. Recent history for Johannesburg's currency: 2020: 3.5% rate vs 3.3% inflation, 2021: 3.75% rate vs 4.6% inflation, 2022: 7% rate vs 6.9% inflation, 2023: 8.25% rate vs 5.9% inflation, 2024: 7.75% rate vs 4.4% inflation, 2025: 6.75% rate vs 3.2% inflation.

If you hold the money in a fixed deposit, the rate you lock in matters more than the compounding frequency. On ZAR 100,000 over 10 years at 7.25%, switching from yearly to monthly compounding adds only ZAR 4,663, while a rate 1 point higher adds ZAR 21,522.

Sources: BIS central bank policy rates · BIS consumer price statistics. Checked 5 November 2026. For how the maths works, see the Compound Interest Calculator guide.