What is the Financing Calculator?
When buying a property or a financed car, the bank charges interest on the amount borrowed. In Brazil, there are two main ways to calculate how you will pay this debt: the Price Table and the SAC Table. Our calculator allows you to simulate both options so you can discover which one generates the lowest effective cost (less interest paid to the bank).
Price Table (Fixed Installments)
In the Price Table (also known as the French Amortization System), all installments have the same value, from the beginning to the end of the contract. The advantage is budget predictability. The disadvantage is that, at the beginning, most of the installment goes just to pay interest, and the principal debt (amortization) falls very slowly. It ends up generating a greater total amount of interest in the long term.
SAC Table (Decreasing Portions)
In the Constant Amortization System (SAC), the discounted value of the original debt is the same every month. As debt falls faster, the interest charged on it also falls. Therefore, the first installment is the highest and the last is the cheapest. At the end of the contract, the total interest paid on the SAC Table is considerably lower than on the Price Table.
How to Simulate
- Financing Amount: The amount you will borrow from the bank (does not include the down payment you have already paid).
- Interest Rate: The monthly rate charged (if you have the annual rate, divide by 12 to get an estimate).
- Term: Number of months to pay (ex: 30 years = 360 months).
- System: Switch between Price and SAC to see the stark difference in total interest!