Vehicle/Auto Loan Monthly Payment Calculator

Loans Finance Calculators

Often, people buying cars on credit only care about the affordability of their monthly installment for the loan and in most cases, they only find out at the dealership.

So today we want to help you prepare and make the sound financial decision for your next car purchase, at the right time.

We created a free vehicle finance loan calculator tool to estimate the monthly payments for an auto loan based on several factors, including the loan amount, interest rate, and loan term.

Let’s get started.

Calculate Car Payments

Use the following car finance calculator when considering taking out an auto loan.

Monthly Installment:
Total Payment:
Total Interest:

To use an auto loan calculator, please input the following information:

  1. Loan amount: The total amount of money you plan to borrow for your car purchase or financing.
  2. Interest rate: The rate at which your loan will accrue interest over time. It is usually expressed as an annual percentage rate (APR).
  3. Loan term: The length of time you have to repay the car loan, it is typically expressed in months. The average term most preferred to finance a car is 60 months.
  4. Down payment or deposit: The amount of money you plan to pay upfront toward the purchase of your car.
    Once you have entered this information into the auto loan calculator, it will instantly generate an estimated monthly payment for your vehicle finance loan.

This can be a helpful tool to use when shopping for a car, as it can give you an idea of how much you can afford to spend each month on your car payment.

Unfortunately, the above estimates are calculated based on the information you input and may not reflect the actual terms you receive from a lender. Lenders will charge you extra fees such as loan initiation, admin, and insurance fees.

Other factors, such as your credit score and income, may also impact your loan terms and interest rate – not everyone qualifies for a car loan in South Africa.

Therefore, it’s always a good idea to shop around for auto loans and compare offers from multiple lenders to ensure you get the best deal possible.

Formula to Calculate Car Loan Installment

The formula to calculate an auto loan can be expressed as follows:

A = P * (r(1+r)^n)/((1+r)^n – 1)


  • A = Monthly payment on the auto loan
  • P = Loan principal or the amount of money borrowed
  • r = Monthly interest rate (annual interest rate divided by 12)
  • n = Number of months over which the loan will be repaid

For example, let’s say you are borrowing R20,000 for a car at an annual interest rate of 5% for a 5-year term. The monthly interest rate would be (5%/12) or 0.00416667. The number of months in the loan term would be 5 years x 12 months/year = 60 months.

Using the formula, the monthly payment on the auto loan would be:

A = 20,000 * (0.00416667(1+0.00416667)^60)/((1+0.00416667)^60 – 1) = R377.42

So the monthly payment on the loan would be R377.42, however, the actual monthly payment could vary depending on factors such as the exact interest rate, fees, and any prepayments or penalties that may be associated with the loan.