How this calculation works
Each offer has its own rate, term, financed fee and recurring costs. Amortise both offers and compare total payments; the lower monthly payment need not have the lower total cost.
A worked example
At 0% without fees, R12 000 costs R1 000 over 12 months or R500 over 24 months. Total repayment is R12 000 in both cases.
Assumptions & limitations
- Quotes must cover the same cash loan amount. Rates and monthly fees are held constant; early settlement fees, variable rates and optional products not entered are excluded.
