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Enter net salary after tax and deductions.
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How AffordEMI works out what you can afford in South Africa
Two numbers drive everything on this page: the payment formula lenders use, and the share of your income they will let that payment take. For South Africa the conservative ceiling is 35% of net monthly income across all your obligations, and a stretched approval reaches 45%. The default rate is 12.75% a year on vehicle finance and 14.5% on two-wheelers, which are market averages rather than an offer to you.
The formula
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount financed after your down payment, r is the annual rate divided by twelve, and n is the term in months. Reducing balance, monthly rest, no balloon and no final lump sum — every instalment shown clears the debt in full by the end of the term.
Why 35% and not more
Your existing commitments come out first, so what remains is genuinely available rather than theoretical. The dashed mark on the meter sits at 20% of income, which is where most planners put the vehicle on its own, because fuel, insurance, servicing and parking are never inside the instalment. The gap between that dashed mark and the 35% line is the difference between what a lender will approve and what leaves you room to live.
Questions people ask about car finance in South Africa
What does the National Credit Act require lenders to check?
A full affordability assessment. Lenders must verify your income and existing obligations and satisfy themselves that you can service the debt — reckless lending is prohibited and agreements can be set aside. In practice that means bank statements and payslips, and it means an existing store card or personal loan reduces what you qualify for.
Should I take a balloon payment?
It is extremely common here and it is where people get hurt. A balloon defers a large chunk of the debt to the end of the term, lowering the instalment and leaving a lump sum you must find, refinance, or cover by selling a car that is often worth less than the amount owing. This calculator never assumes a balloon — every instalment shown clears the debt in full.
How does the prime rate affect my instalment?
Most vehicle finance here is linked to prime, so your instalment moves when the Reserve Bank moves rates. A fixed rate costs more up front and removes that risk. The default rate on this page reflects prime plus a typical margin — if you are quoted linked pricing, ask what your instalment becomes if prime rises by two percentage points, and check that it still fits.
What else should I budget for?
Comprehensive insurance is effectively compulsory on financed vehicles and is a substantial monthly cost in South Africa, plus a tracker in many cases. Service and maintenance plans are sometimes bundled into the price and sometimes not. The instalment is not the cost of the car — the "left each month after this" figure on every card is what actually has to absorb the rest.
Where the prices come from
Retail price for popular variants on sale now, curated by hand rather than scraped live. Most vehicle finance is linked to prime, so the instalment moves when the Reserve Bank moves rates. Prices move constantly — treat every figure here as a starting point and confirm with the dealer before you commit to anything.
What this page never does
- No account, no login and no email address to run a calculation.
- Your salary is never sent to a server. The maths runs entirely in your browser.
- Sharing a result encodes your inputs into the link, so you choose who sees them.
- No lending, broking or advice. See the disclosure for how this site is funded.