Vehicle Finance Calculator South Africa

Calculations Summary

Monthly Payment: 0.00

Loan Amount: 0.00

Total Interest: 0.00

Total Cost of Loan: 0.00

Final Payment: 0.00

How to Calculate car finance in South Africa

To calculate monthly car loan payments, use the following formular:

Determine the loan variables:

  • Principal amount (the initial loan amount)
  • Annual interest rate (as a decimal)
  • Loan term in years (the number of years you’ll be repaying the loan)
  • Convert the annual interest rate to a monthly interest rate by dividing it by 12 (the number of months in a year).

Convert the loan term to months by multiplying it by 12.

Use the following formula to calculate the monthly payment (PMT):

PMT = [P * r * (1 + r)^n] / [(1 + r)^n – 1]


PMT = Monthly payment
P = Principal amount
r = Monthly interest rate
n = Total number of months (loan term in years * 12)
Plug the values from steps 2, 3, and 4 into the formula and calculate the monthly payment.

Calculating vehicle finance in South Africa involves considering the purchase price of the vehicle, the interest rate charged by the lender, and the loan term.

Here is a step-by-step guide with examples of how to calculate vehicle finance:

Step 1: Determine the Purchase Price:

Decide on the vehicle you want to buy and find out its purchase price.

For example, let’s assume you plan to buy a car for R200,000.

Step 2: Decide on Your Deposit:

Consider how much deposit you can afford to pay upfront. Lenders typically require a minimum deposit of around 10% of the purchase price.

Let’s say you decide to pay a 20% deposit (R40,000) on your R200,000 car.

Step 3: Calculate Loan Amount:

Subtract your deposit from the purchase price to determine your loan amount. In this case, R200,000 – R40,000 = R160,000.

Step 4: Research Interest Rates:

Look for current interest rates offered by various lenders in South Africa. These rates can vary depending on factors like credit score and loan term. Assume that you qualify for an interest rate of 10%.

Step 5: Determine Loan Term:

Decide how long you want to take to repay the loan. Loan terms commonly range from 12 to 72 months (1 to 6 years). For this example, let’s consider a loan term of 48 months (4 years).

Step 6: Calculate Monthly Repayment:

To calculate the monthly repayment, you can use an online loan calculator or perform the calculation manually using the following formula:

Monthly Repayment = (Loan Amount * Monthly Interest Rate) / (1 – (1 + Monthly Interest Rate)^(-Loan Term))

In this case, the loan amount is R160,000, and the interest rate is 10% per annum. Therefore, the monthly interest rate would be (10/100) / 12 = 0.0083.

Using this information in the formula:

Monthly Repayment = (160000 * 0.0083) / (1 – (1 + 0.0083)^(-48))
= R4,005

Therefore, your monthly repayment for an R160,000 vehicle finance with a loan term of 48 months and an interest rate of 10% would be approximately R4,005.