Price vs SAC Table: How to Choose the Best System
When taking out real estate or vehicle financing, you will need to choose between two amortization systems: the Price Table and the SAC (Constant Amortization System). This decision directly affects the value of your installments, the total interest paid and the speed at which the debt decreases.
Use our Financing Calculator to simulate and compare the two systems before signing any contract.
What is the Price Table?
Created by the English economist Richard Price in the 18th century, the Price Table is the most used amortization system in Brazil for bank financing. Its central characteristic is that all monthly installments are equal and fixed throughout the entire contract.
How it works in practice:
Although the installments are fixed, the proportion between amortization (reduction of the outstanding balance) and interest changes over time:
- In the first installments: the majority of the amount paid is made up of interest and a small part amortizes the balance.
- In the last installments: the outstanding balance has already been greatly reduced, so the majority of the installment is amortization and a small part is interest.
Advantage of the Price Table:
Ease of financial planning, as the provision does not vary (apart from monetary correction based on contractual indices).
What is SAC (Constant Amortization System)?
In SAC, the amortization value is fixed and constant in all installments, and the interest value decreases as the outstanding balance drops.
How it works in practice:
- Higher initial installments: As interest is calculated on a still high outstanding balance, the first installments are higher.
- Decreasing installments: Month by month, as the balance falls (due to constant amortization), the interest calculated is lower, and therefore the total installment progressively decreases.
Advantage of SAC:
The outstanding balance falls faster, which means less interest accrued on the total of the contract compared to the Price Table for the same term and rate.
Direct Comparison: Price vs SAC Table
| Feature | Price Table | SAC |
|---|---|---|
| Instalments | Fixed over time | Decreasing month by month |
| First installments | Lower than SAC | Higher than Price |
| Latest installments | Same as the first | Much smaller than the first |
| Total interest paid | Larger (long term) | Minor |
| Decrease in outstanding balance | Slower initially | Constant and accelerated |
| Profile of those who benefit | Who needs a smaller initial installment | Who has an initial income to support a higher payment |
Which one to choose?
- Choose the Price Table if your current income is limited and you need the first installment to be as small as possible to fit your budget.
- Choose SAC if you can afford the higher initial installments and want to save significantly on the total interest paid over the course of the contract.
In pure financial terms, SAC is almost always more advantageous in the long term, as the total interest paid is systematically lower than in the Price Table for the same amount, rate and term.
Simulate both scenarios right now in our Property Financing Calculator and see the real impact on your wallet!