The monthly cost of financing R 600 000
At 12.75% over 60 months the instalment on R 600 000 is R 13 575.18. 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 162 902, of which R 71 268 is interest. Over the full term the interest adds 35.8% to the price you financed.
How it is worked out
- Amount financed: R 600 000 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 13 575.18.
- Total repaid: R 13 575.18 × 60 = R 814 511, so interest is R 214 511, 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 16 022 | R 169 063 | R 769 063 |
| 60 months | R 13 575 | R 214 511 | R 814 511 |
| 72 months | R 11 965 | R 261 512 | R 861 512 |
What a deposit does
Paying 20% upfront, which is R 120 000, reduces the amount financed to R 480 000 and the instalment to R 10 860, and cuts total interest to R 171 609.
| Deposit | Amount financed | Monthly instalment | Total interest |
|---|---|---|---|
| No deposit | R 600 000 | R 13 575 | R 214 511 |
| 10% (R 60 000) | R 540 000 | R 12 218 | R 193 060 |
| 20% (R 120 000) | R 480 000 | R 10 860 | R 171 609 |
Cars near R 600 000
| Vehicle price | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| 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 |
| R 1 000 000 | R 22 625 | R 357 518 | R 1 357 518 |
A car that costs R 100 000 more, at R 700 000, adds R 2 263 to the monthly instalment; one that costs R 100 000 less, at R 500 000, takes R 2 263 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 500 000
- Higher: R 700 000
- All amounts: Car finance