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How Much Car Can I Afford?

Enter your income and the calculator works out a sensible car price using the standard South African affordability rules — then shows what owning it really costs each month, not just the instalment.

Updated 22 June 2026 • By Sipho Dlamini • Fact-checked

Car affordability calculator

How much car can you afford on your salary? Based on the standard SA affordability rules.

Gross monthly income Existing monthly debt repayments Deposit you'll put down Finance term (months) Interest rate (%/yr) — vehicle finance is prime-linked Prime is 10.50%. A "good" rate is about prime + 2% (12.50%). Affordability rule

Max instalment

R7 500/mo

Limited by the 25%-of-income rule

Car price you can afford

R333 364

Incl. your R0 deposit

True cost of owning it

R12 500/mo

Incl. fuel, insurance, maintenance, licensing

The instalment is only ~60% of what a car really costs each month. Budget for comprehensive insurance (mandatory on financed cars), fuel, maintenance and licensing too — that's the "true cost" figure above. This is a guide, not a quote; your bank assesses affordability under the National Credit Act using your full income and expenses.

The rules this calculator uses

The 25%-of-income rule

South African vehicle lenders and finance houses widely coach that your car instalment should not exceed about 25% of your gross monthly income (some advisers prefer a more conservative 20%). It's the single most-used affordability guideline.

The 36% total-debt rule

Your total monthly debt repayments — the new car plus everything else (loans, credit cards, store accounts) — should stay at or below roughly 36% of gross income. If you already carry debt, this can be the limit that bites first, so the calculator takes the lower of the two ceilings.

The "true cost" of 20% of take-home

Once you add fuel, insurance, maintenance and licensing, the whole vehicle cost should ideally stay under about 20% of your take-home pay. Cross roughly 32% and you're "car poor" — too much of your income tied up in a depreciating asset.

Before you sign at the dealership

The "affordable" figure here is what's comfortable — a bank may approve you for more. Borrowing to your approved maximum is how people end up car poor.
Get pre-approved finance from your bank before you shop, so you negotiate on price, not on the monthly instalment.
Watch the rate and the term — stretching to 84 months lowers the instalment but you pay far more interest and stay in negative equity longer.

Frequently asked questions

How much car can I afford on my salary in South Africa? +

The most-used rule of thumb is that your car instalment should not exceed 25% of your gross monthly income — some advisers suggest a more conservative 20%. On a R30,000 gross salary that's about R6,000 to R7,500 a month, which at a typical 12.5% rate over 60 months finances a car of roughly R270,000 to R335,000. Remember the instalment is only part of the cost.

What percentage of my income should I spend on a car? +

Two rules apply together: keep the instalment at or below 25% of gross income, and keep your total debt repayments (including the car) at or below 36% of gross. The lower of the two is your real ceiling. Separately, your full vehicle cost — instalment plus fuel, insurance, maintenance and licensing — should ideally stay under about 20% of your take-home pay. Above roughly 32% you become "car poor".

What interest rate will I pay on car finance? +

Vehicle finance in South Africa is prime-linked, not capped at the unsecured-loan rate, because the car is security for the loan. At a prime rate of 10.50%, a strong applicant might get prime + 0.5% to 1%, an average buyer around prime + 2% (about 12.50%), and weaker credit profiles prime + 2.5% to 3.5% (13–14%). Used cars usually cost a little more than new.

Does a deposit help me afford a more expensive car? +

Yes. A deposit reduces the amount you finance, so for the same monthly instalment you can buy a more expensive car — and a deposit (commonly around 10%) often earns you a slightly better interest rate. A 0% deposit is possible but means a higher instalment and more interest over the term.

Should I take a balloon payment to lower my instalment? +

A balloon (residual) of up to 35% of the price lowers your monthly instalment by roughly 20–30%, but interest is charged on the full price including the balloon, so you pay more overall — and you owe a large lump sum at the end that usually has to be settled or refinanced. Use it cautiously.

What costs should I budget for besides the instalment? +

The instalment is only about 60% of what a car really costs each month. Budget for comprehensive insurance (mandatory on financed vehicles), fuel, maintenance and tyres, and annual licensing. A useful rule: take your instalment and divide by 0.6 to estimate the true monthly cost.