The monthly cost of financing R 400 000
At 12.75% over 60 months the instalment on R 400 000 is R 9 050.12. 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 108 601, of which R 47 512 is interest. Over the full term the interest adds 35.8% to the price you financed.
How it is worked out
- Amount financed: R 400 000 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 9 050.12.
- Total repaid: R 9 050.12 × 60 = R 543 007, so interest is R 143 007, 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 10 681 | R 112 709 | R 512 709 |
| 60 months | R 9 050 | R 143 007 | R 543 007 |
| 72 months | R 7 977 | R 174 341 | R 574 341 |
What a deposit does
Paying 20% upfront, which is R 80 000, reduces the amount financed to R 320 000 and the instalment to R 7 240, and cuts total interest to R 114 406.
| Deposit | Amount financed | Monthly instalment | Total interest |
|---|---|---|---|
| No deposit | R 400 000 | R 9 050 | R 143 007 |
| 10% (R 40 000) | R 360 000 | R 8 145 | R 128 706 |
| 20% (R 80 000) | R 320 000 | R 7 240 | R 114 406 |
Cars near R 400 000
| Vehicle price | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| R 250 000 | R 5 656 | R 89 380 | R 339 380 |
| R 300 000 | R 6 788 | R 107 255 | R 407 255 |
| R 350 000 | R 7 919 | R 125 131 | R 475 131 |
| R 400 000 | R 9 050 | R 143 007 | R 543 007 |
| R 450 000 | R 10 181 | R 160 883 | R 610 883 |
| R 500 000 | R 11 313 | R 178 759 | R 678 759 |
| R 600 000 | R 13 575 | R 214 511 | R 814 511 |
A car that costs R 50 000 more, at R 450 000, adds R 1 131 to the monthly instalment; one that costs R 50 000 less, at R 350 000, takes R 1 131 off it.
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 350 000
- Higher: R 450 000
- All amounts: Car finance