Find out what car you can afford based on your take-home salary, expenses, insurance, and tracker costs.
Enter your take-home pay and all monthly commitments.
Insurance and tracking are typically required by lenders.
| Affordability Level | Instalment | Total Monthly | Car Price |
|---|
Indicative only. Based on the National Credit Act guideline that vehicle repayments should not exceed 25–30% of take-home pay. Insurance and tracker costs are factored into your monthly budget. Excludes fuel, maintenance, tyres, and licensing. Final approval depends on your credit score and the lender's affordability assessment.
Buying a car is one of the biggest monthly commitments most South Africans take on, second only to a home loan. This calculator helps you work out a realistic maximum car price based on your take-home salary, monthly expenses, and the full cost of ownership including insurance and a tracker.
Enter your numbers below to see three affordability scenarios — conservative, balanced, and stretched — so you can decide what feels right for your budget.
How This Calculator Works
The calculator follows the National Credit Act (NCA) affordability principle, which guides South African lenders when assessing vehicle finance applications. The widely accepted rule is that your total monthly vehicle cost should not exceed 25–30% of your take-home pay.
We treat "total vehicle cost" as your instalment plus insurance and tracker subscriptions, because banks look at the full burden of ownership when reviewing applications. A R5,000 instalment with R2,000 in insurance and tracker is really a R7,000 monthly commitment.
The output gives you three scenarios:
- Conservative (20% of take-home) — leaves the most room for emergencies, savings, and unexpected costs like tyres or a service.
- Balanced (recommended) — aligned with the 30% NCA ceiling and lender expectations.
- Stretched (35% of take-home) — the upper end some lenders may approve, but leaves little buffer for life surprises.
What the Calculator Includes
To give you a realistic answer, the calculator factors in:
- Take-home salary — your actual nett pay after tax, UIF, and medical aid deductions.
- Monthly expenses — rent or bond, groceries, utilities, school fees, and other living costs.
- Existing debt repayments — credit cards, personal loans, store accounts, or student loans.
- Insurance — comprehensive cover is required by every bank financing a vehicle.
- Tracker — providers like Tracker, Cartrack, Netstar, or Beame are typically mandatory for financed vehicles.
- Loan terms — interest rate, term length, deposit, and any balloon payment.
What the Calculator Excludes
This is an indicative tool, not a credit assessment. It does not account for:
- Fuel and toll costs
- Maintenance, services, and tyres
- Annual licence renewal
- Bank initiation and monthly admin fees
- Your individual credit score and bureau profile
Tips for Using the Calculator Accurately
Be honest about expenses. Pull three months of bank statements and average them out. Most South Africans underestimate variable spending by 15–25%.
Use realistic insurance figures. A premium for a R250,000 hatchback in Gauteng typically runs R1,200–R1,800 per month. A R600,000 SUV in Johannesburg can easily exceed R2,500. Get a quick quote before calculating.
Default to a 72-month term. This is the most common loan length in South Africa, but a shorter term saves significant interest if you can afford it.
Avoid balloon payments where possible. A balloon (or residual) lowers your monthly instalment but leaves a large lump sum due at the end of the term — often refinanced into another loan, trapping you in a cycle.
Frequently Asked Questions
What percentage of my salary should go on a car?
Most financial guidance in South Africa points to a maximum of 30% of take-home pay for total vehicle costs (instalment, insurance, and tracker combined). Many advisers suggest aiming closer to 20% to leave room for fuel, maintenance, and savings.
Does the calculator give the same answer as the bank?
No. Banks run a full affordability assessment using your actual bank statements, payslips, and credit bureau record. This calculator is a planning tool to help you set realistic expectations before applying.
Should I include my partner's income?
Only if you plan to apply for the loan jointly. If the finance will be in your name alone, use only your own take-home salary.
Why does the calculator include insurance and tracker?
Both are non-negotiable for financed vehicles in South Africa. Excluding them gives a misleading affordability figure, because lenders factor in the full monthly outflow when assessing your application.
What's the difference between a balloon and a deposit?
A deposit is paid upfront and reduces the loan amount. A balloon is a deferred lump sum due at the end of the loan term — your monthly instalment is lower, but you owe a large amount at the end (typically 20–35% of the car's price).