Car Affordability Calculator
Calculate how much car you can afford in South Africa using the 20% of net income rule. Includes balloon payment options and total cost of ownership.
Quick Calculator Get a fast estimate
R
R
Bond, personal loans, credit card minimums, etc.
R
Cash upfront. A larger deposit reduces your monthly payment.
%
A balloon reduces monthly payments but leaves a large amount due at end.
Maximum Car Price You Can Afford
R 163 346
Maximum Car Loan
R 133 346
Maximum Monthly Repayment
R 3 000
Your Deposit
R 30 000
Total Debt-to-Income Ratio
20.00%
Recommendation
Budget looks manageable
Link copied to clipboard!
The 20% Car Rule
The standard financial guideline is that your monthly car payment should not exceed 20% of your net (take-home) income.
| Net Income | Max Instalment (20%) | Max Car (5yr, 12.5%, 10% dep) |
|---|---|---|
| R15,000 | R3,000 | ~R135,000 |
| R20,000 | R4,000 | ~R180,000 |
| R30,000 | R6,000 | ~R270,000 |
| R50,000 | R10,000 | ~R450,000 |
| R75,000 | R15,000 | ~R675,000 |
Assumes no other debt. Existing debt repayments reduce the available budget.
Need more detail?
Extended Calculator More options, charts, and scenario comparison
R
R
%
Maximum Car Price (20% income rule)
R 359 388
Max Monthly Instalment
R 7 000
Max Loan Amount
R 309 388
Monthly Cost Breakdown
Instalment: R 7 000
Insurance (est): R 299
Fuel (est): R 3 000
Maintenance (est): R 599
Balloon Payments: The Hidden Trap
A balloon payment reduces your monthly instalment but defers a large portion to the end of the term. At term end, you must either:
- Pay the full balloon amount in cash
- Refinance — taking a new loan at whatever rates apply then
- Trade in the car — but if it is worth less than the balloon, you are in negative equity
Depreciation risk: A R400,000 car with a 30% balloon (R120,000) may be worth R220,000 after 5 years — far less than the balloon amount. Always calculate whether the car will be worth more than the balloon at term end.
Need full precision?
Professional Calculator Complete parameters, sensitivity analysis, and detailed breakdown
Finance Details
R
R
%
SA average ~12-14%
%
Typical: 15-30%
%
SA avg: 15-20%
Running Costs
km
R
L/100km
R
R
Service plan, repairs
R
R
yrs
Total Monthly Cost of Ownership
R 10 069
Finance instalment
R 4 751
Fuel cost
R 3 038
Insurance
R 1 200
Maintenance
R 800
Tyre & license
R 281
5-Year Total Cost of Ownership
| Year | Finance | Fuel | Insurance | Maint | Residual Value | Annual Total |
|---|---|---|---|---|---|---|
| Year 1 | R 57 016 | R 36 450 | R 14 400 | R 9 600 | R 297 500 | R 118 166 |
| Year 2 | R 57 016 | R 36 450 | R 14 400 | R 9 600 | R 252 875 | R 118 166 |
| Year 3 | R 57 016 | R 36 450 | R 14 400 | R 9 600 | R 214 944 | R 126 166 |
| Year 4 | R 57 016 | R 36 450 | R 14 400 | R 9 600 | R 182 702 | R 118 166 |
| Year 5 | R 57 016 | R 36 450 | R 14 400 | R 9 600 | R 155 297 | R 118 166 |
| 5-Year TCO | R 668 829 | |||||
Depreciation loss over 5 years: R 194 703 (55.6% of purchase price). Residual value after 5 years: R 155 297.
Frequently Asked Questions
Financial advisors recommend spending no more than 20% of your net monthly income on a car payment. So if your take-home pay is R25,000, your maximum car instalment should be R5,000. Your total car costs (including insurance, fuel, maintenance) should ideally be under 30% of net income.
Yes. A deposit of 10-20% significantly reduces your monthly instalment and total interest paid. It also helps avoid being "underwater" on your car loan (owing more than the car is worth) as vehicles depreciate quickly — often 15-20% in the first year.
A balloon payment (or residual) is a lump sum due at the end of the finance term. It lowers monthly instalments, making it look affordable, but you must pay or refinance the balloon at term end. If you cannot pay the balloon, you may need to take another loan — at potentially higher rates. Avoid balloons if possible.
SA vehicle finance rates are typically prime rate + 0 to prime + 4% depending on your credit score, deposit, and the vehicle. With prime at 11.75%, rates range from about 11.75% to 15.75%. A strong credit score can get you a rate at or below prime.