Calculations Summary
Monthly Payment: 0.00
Loan Amount: 0.00
Total Interest: 0.00
Total Cost of Loan: 0.00
Final Payment: 0.00
Sponsored Ad:
Transform your financial life by tracking, planning, and optimizing your budget effortlessly with our user-friendly Google Sheets Budget Planner Template! I Want This Template
If you want to acquire a new car, understanding your financing options is crucial. Our vehicle finance calculator is a tool designed to bring transparency and ease into your car loan decision-making process.
Imagine being able to see, in real time, how different loan terms, interest rates, and down payments affect your monthly budget.
This calculator does exactly that, offering you a clear view of what you can afford, and tailoring options to your financial situation.
Whether you’re a first-time buyer or a seasoned car owner looking to upgrade, this tool simplifies what can often be an overwhelming part of car buying.
It’s not just about finding the right car; it’s also about finding the right financial fit.
How to Calculate Car Finance in South Africa
To calculate monthly car loan payments, use the following formula:
Determine the loan variables:
- Principal amount (the initial loan amount)
- Annual interest rate (as a decimal)
- Loan term in years (the number of years you’ll be repaying the loan)
- Convert the annual interest rate to a monthly interest rate by dividing it by 12 (the number of months in a year).
Convert the loan term to months by multiplying it by 12.
Use the following formula to calculate the monthly payment (PMT):
PMT = [P * r * (1 + r)^n] / [(1 + r)^n – 1]
Where:
PMT = Monthly payment
P = Principal amount
r = Monthly interest rate
n = Total number of months (loan term in years * 12)
Plug the values from steps 2, 3, and 4 into the formula and calculate the monthly payment.