The monthly cost of financing R 500 000
At 12.75% over 60 months the instalment on R 500 000 is R 11 312.65. 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 135 752, of which R 59 390 is interest. Over the full term the interest adds 35.8% to the price you financed.
How it is worked out
- Amount financed: R 500 000 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 11 312.65.
- Total repaid: R 11 312.65 × 60 = R 678 759, so interest is R 178 759, 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 13 352 | R 140 886 | R 640 886 |
| 60 months | R 11 313 | R 178 759 | R 678 759 |
| 72 months | R 9 971 | R 217 926 | R 717 926 |
What a deposit does
Paying 20% upfront, which is R 100 000, reduces the amount financed to R 400 000 and the instalment to R 9 050, and cuts total interest to R 143 007.
| Deposit | Amount financed | Monthly instalment | Total interest |
|---|---|---|---|
| No deposit | R 500 000 | R 11 313 | R 178 759 |
| 10% (R 50 000) | R 450 000 | R 10 181 | R 160 883 |
| 20% (R 100 000) | R 400 000 | R 9 050 | R 143 007 |
Cars near R 500 000
| Vehicle price | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| 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 |
| 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 |
A car that costs R 100 000 more, at R 600 000, adds R 2 263 to the monthly instalment; one that costs R 50 000 less, at R 450 000, 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 450 000
- Higher: R 600 000
- All amounts: Car finance