The monthly cost of financing R 1 000 000
At 12.75% over 60 months the instalment on R 1 000 000 is R 22 625.30. The example rate is prime of 10.75% plus 2 percentage points. Your own rate is set by the lender and depends on your credit record, the deposit and the vehicle, so treat this as an illustration.
In the first year you pay R 271 504, of which R 118 780 is interest. Over the full term the interest adds 35.8% to the price you financed.
How it is worked out
- Amount financed: R 1 000 000 with no deposit, trade-in or balloon payment.
- Monthly rate: 12.75% a year ÷ 12 = 1.0625% a month.
- Number of payments: 60.
- Instalment: the level payment that clears the loan after 60 payments is R 22 625.30.
- Total repaid: R 22 625.30 × 60 = R 1 357 518, so interest is R 357 518, or 35.8% of the price.
What a different term does
A longer term lowers the monthly instalment and raises the total interest. A shorter term does the opposite.
| Term | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| 48 months | R 26 704 | R 281 772 | R 1 281 772 |
| 60 months | R 22 625 | R 357 518 | R 1 357 518 |
| 72 months | R 19 942 | R 435 853 | R 1 435 853 |
What a deposit does
Paying 20% upfront, which is R 200 000, reduces the amount financed to R 800 000 and the instalment to R 18 100, and cuts total interest to R 286 014.
| Deposit | Amount financed | Monthly instalment | Total interest |
|---|---|---|---|
| No deposit | R 1 000 000 | R 22 625 | R 357 518 |
| 10% (R 100 000) | R 900 000 | R 20 363 | R 321 766 |
| 20% (R 200 000) | R 800 000 | R 18 100 | R 286 014 |
Cars near R 1 000 000
| Vehicle price | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| R 600 000 | R 13 575 | R 214 511 | R 814 511 |
| R 700 000 | R 15 838 | R 250 263 | R 950 263 |
| R 800 000 | R 18 100 | R 286 014 | R 1 086 014 |
| R 1 000 000 | R 22 625 | R 357 518 | R 1 357 518 |
This is the highest price we show. A car that costs R 200 000 less, at R 800 000, takes R 4 525 off the monthly instalment.
Assumptions
- Interest at 12.75% a year, compounded monthly, over 60 months. This is an example rate, not an offer.
- No balloon payment, trade-in, initiation fee or monthly service fee. Those raise the real cost and can be added in the full calculator.
- Insurance, licensing, fuel and servicing are not included.
Work it out for your own numbers
This page uses fixed example inputs. To change the figures, use the full car finance calculator. It recalculates as you type and nothing you enter leaves your browser.
More prices
- Lower: R 800 000
- All amounts: Car finance