Loan Calculator - Simulation and Installment Analysis
Simulate and analyze loan and financing installments. Compare interest rates, understand the total cost with the Price formula and perform online simulations.
What is the purpose?
This Loan calculator helps you simulate the monthly installments, the total interest cost and the final amount to be paid when taking out a loan or bank financing.
Formula Used
The value of the monthly installment (PMT) with fixed installments is calculated using the amortization formula in the Price Table:
PMT = P × i × (1 + i)n(1 + i)n - 1
Where:
- PMT = Monthly installment amount
- P = Principal amount financed
- i = Monthly interest rate (nominal)
- n = Deadline in number of installments (months)
How to interpret the result?
At the end of the simulation, you see:
- Monthly Installment: The fixed monthly payment that will be due every month.
- Total Financed (Principal): The original contracted amount of the loan.
- Total Interest Cost: The amount charged by the financial institution for granting the credit.
- Total Amount Paid: The sum of all installments to be paid at the end of the term.
Practical Examples
- Basic Example (Short Term): Loan of
2.000,00 a uma taxa de 3% ao mês por 6 meses. Parcela mensal:369.18. Final total cost:2.215,08. Juros totais:215.08. - Intermediate Example (Vehicle): Financing of
30.000,00 com taxa de 1,5% ao mês por 36 meses. Parcela mensal:1,084.07. Final total cost:39.026,63. Juros totais:9,026.63. - Advanced Example (Financing): Loan of
100.000,00 com taxa de 1% ao mês por 120 meses. Parcela mensal:1,434.71. Final total cost:172.165,14. Juros totais:72,165.14.
Usage Tips
- Analyze the CET: The Total Effective Cost includes administrative fees, insurance and IOF, being higher than the announced nominal interest rate.
- Amortize in Advance: Making extra payments to reduce the outstanding balance backwards eliminates future interest significantly.
- Limit your Commitment: The total installments of all your debts must not exceed 30% of your net monthly budget.
- Compare Banks: Use the simulator to compare credit offers from different banks and negotiate lower rates.
Important Observations
The results generated refer to the simulation of the traditional Price Table with fixed interest. Additional contracting fees or built-in insurance vary by financial institution.
Frequently Asked Questions (FAQ)
What does the acronym CET mean?
CET means Total Effective Cost. It is the real rate that encompasses all charges, bank fees and taxes (such as IOF) levied on the credit operation.
What is the Price Table?
It is a French amortization system where installments are constant and fixed throughout the financing term, with increasing amortizations and decreasing interest.
What is the difference between Price Table and SAC?
In the Price system, installments are equal and interest decreases while amortization increases. In the SAC system, principal amortization is constant and installments start high and end low.
How does credit portability work?
It is the consumer's right to transfer their debt from one financial institution to another with more favorable conditions, such as lower interest rates or better terms.
Can I pay off the loan before the deadline?
Yes, the consumer protection code guarantees the proportional reduction of interest and fees in the event of partial or total early settlement of the debt.
How does the interest rate affect the total cost of a long loan?
Over long terms, small rate differences cause large impacts on the accumulated value of interest due to capitalization. Reducing the term drastically reduces the interest paid.
What happens if I fall behind on my loan installment?
Late payment interest will be charged (limited to 1% per month proportionally), a fine for late payment (generally up to 2%) and your name may be rejected by credit protection agencies.
What is nominal interest rate and effective interest rate?
The nominal rate is that declared in the contract without considering the capitalization of shorter periods (e.g. 12% per year with monthly capitalization). The effective rate is the real capitalized cost (e.g. 12.68% p.a.).
Is there a grace period to start paying loans?
Some loans offer a grace period of 30 to 90 days. But be careful: interest continues to accrue during this period and is incorporated into the principal outstanding balance.