NCA affordability calculator for South Africa
Enter three months of gross income, statutory deductions, declared living expenses, bureau instalments and the loan details. The calculator applies the minimum expense norm table, works out net and discretionary income, checks whether the new instalment is covered and compares the rate and fees with the caps for the credit type.
Largest amount that fits
The R140,000 applied for costs R4,409.26 a month. Discretionary income is R4,129.62, short by R279.64, and the largest amount that fits is R130,931.
Where gross income goes
The bar shows average gross income a month and how the Reg 23A calculation allocates it, ending with the new instalment and what is left.
Calculation details
| Average gross income | R18,500.00 |
| Income band | The band from R6,250.01 to R25,000.00 |
| Minimum expense norm | R2,270.38 |
| Living expenses used | R2,270.38 |
| Net income | R13,929.62 |
| Discretionary income | R4,129.62 |
| New instalment | R4,409.26 |
| Income after instalment | −R279.64 |
Copy these cells into a decision table with gross income as the condition and the fixed amount, factor and band minimum as the results.
Rate and fee caps
| Cap | Entered | ||
|---|---|---|---|
| Maximum interest, the repo rate plus 21% a year | 28.25% | 27.5% | Within |
| Maximum initiation fee, R165 plus 10% of the amount above R1,000, at most R1,050 | R1,050.00 | R1,050.00 | Within |
| Maximum service fee | R60 | R60.00 | Within |
The caps are read from the National Credit Regulations, regulation 42 tables A and B as amended in November 2015, and regulation 44, on 26 October 2026. Amounts are shown without VAT. Check the current text and repo rate before relying on them.
Get the result by email
Run this calculation inside the credit decision on every application, using bureau instalments read at that moment and recording the reason for each decline. Start free
Calculation formulas
Average gross income = (Gross income, latest + Gross income, prior month + Income two months ago) ÷ 3 Minimum expense norm = Fixed amount + Factor × (Average gross income − Band minimum) Living expenses used = max(Minimum expense norm, Declared living expenses) Net income = Average gross income − Statutory deductions − Living expenses used Discretionary income = Net income − Bureau instalments − Maintenance and other expenses New instalment = (Amount or facility limit + Initiation fee) × r ÷ (1 − (1 + r) ^ −Term in months) + Monthly service fee, r = Annual interest rate ÷ 12 Largest amount that fits = Affordable amount after fees
The calculation follows Reg 23A in the 2015 regulations and always averages three months of income. It does not model declared expenses below the norm, which the regulation allows only on an exceptional basis with the questionnaire, and it is not legal advice.
NCA affordability calculation
A Reg 23A affordability assessment works out gross income, the minimum expense norm, net income and discretionary income. It compares discretionary income with the new instalment, using the credit provider's figures for deductions, declared expenses, bureau instalments and maintenance.
The comparison shows whether discretionary income covers the instalment and the largest amount that fits. Use the result when assessing the application, and check the current regulations and repo rate before relying on the figures.
Common questions
How do I calculate affordability under the NCA?
For a Reg 23A affordability assessment, work out gross income, the minimum expense norm, net income and discretionary income in that order. Compare discretionary income with the new instalment.
How does the minimum expense norms table work?
The table sets a minimum expense norm using a fixed amount and a factor applied to gross income above the band minimum. The calculator uses the norm or the consumer's declared living expenses, whichever is higher.
How do I calculate discretionary income for a loan?
Subtract statutory deductions and living expenses used from gross income to work out net income. Subtract bureau instalments, maintenance and other necessary expenses from net income to get discretionary income.
What is the maximum interest rate under the NCA?
The maximum interest rate depends on the credit type. For most credit types, the cap is based on the repo rate plus a margin. Short-term credit has a monthly rate cap.
Which loans are outside the Reg 23A affordability test?
Reg 23A does not apply to developmental credit or to several other types of credit and changes listed in the regulation. For developmental credit, the tool marks the result as the lender's own assessment under section 81.