Vehicle Finance Calculator — South Africa
Calculate your monthly car finance repayment. Enter the vehicle price, deposit, interest rate, and term.
Last updated: May 2026
A balloon reduces your monthly instalment but leaves a lump sum due at the end of the term.
Wondering if subscribing is cheaper than financing?
Compare total cost of ownership against a monthly vehicle subscription — including resale, excess km, and depreciation.
Calculates your monthly vehicle instalment, total interest, and cost of a balloon payment — using the reducing balance method used by SA banks.
Key inputs explained
- Vehicle price
- On-the-road price including VAT.
- Deposit
- Larger deposits reduce your financed amount and total interest paid.
- Interest rate
- Typically prime + 0–3% depending on your credit score. Current prime is ~11.75%.
- Balloon payment
- A percentage of the purchase price deferred to the final payment. Reduces monthly instalment but increases total cost.
A balloon payment looks attractive (lower monthly) but you're deferring a large lump sum to the end of the term. When it's due, you either refinance (more interest) or sell the vehicle — often for less than the balloon amount due to depreciation.
Frequently Asked Questions
SA vehicle finance uses the reducing balance method. Your monthly instalment is calculated using the standard annuity formula, where P is the financed amount (price minus deposit), r is the monthly interest rate, and n is the term in months. A balloon payment reduces instalments but leaves a lump sum due at the end.
A balloon payment (residual value) is a lump sum due at the end of your finance term, typically 20%–30% of the vehicle's original value. It reduces your monthly instalment during the term but means you either pay the balloon in cash, refinance it, or trade in the vehicle. It can create negative equity if the car depreciates faster than expected.
SA vehicle finance rates are typically prime rate (currently 10.25%) plus a risk margin based on your credit profile, deposit size, and vehicle age. New vehicles from dealerships often attract rates at or near prime. Used vehicles, private sales, or buyers with lower credit scores typically pay prime plus 2%–5%.
A larger deposit reduces the amount financed, which lowers your monthly instalment and total interest paid. A 10% deposit on a R380,000 vehicle saves roughly R12,000–R18,000 in total interest over 60 months at current rates. It also reduces the risk of negative equity (owing more than the car is worth).
Advertisement