Brazil Mortgage Calculator — SAC vs. PRICE
Data verified on
Brazilian mortgages come in two flavors, and the choice between them can change the total cost by hundreds of thousands of reais. Enter the property price, your down payment, the annual rate and the term to see both systems side by side: the fixed PRICE payment, the first and last SAC payments, and exactly how much SAC saves over the life of the loan.
The two Brazilian amortization systems
PRICE (the French amortization system, known internationally as a standard fixed-payment mortgage) keeps the monthly installment identical from the first month to the last. Early payments are almost entirely interest; principal repayment accelerates only in the later years. The formula is PMT = PV × i ÷ [1 − (1 + i)⁻ⁿ].
SAC (Sistema de Amortização Constante, or constant amortization) repays the same slice of principal every month — principal ÷ number of months — and charges interest on the declining balance. The installment therefore starts high and falls a little every single month. The first payment is amortization + i × PV; the last is amortization × (1 + i).
SAC is the default offered by Caixa Econômica Federal and dominates the Brazilian market. That is unusual worldwide: in the US, UK and most of Europe, the fixed-payment structure is effectively the only option retail borrowers see.
Worked example: R$400,000 property, 20% down, 11% per year, 30 years
Financing R$320,000 at 11% per year over 360 months, PRICE gives a flat installment of R$2,922.74 and a total outlay of R$1,052,187.73 — R$732,187.73 of it pure interest, more than double the amount borrowed.
SAC on the same loan starts at R$3,683.96, ends at R$896.65, and totals R$824,510.14 with R$504,510.14 of interest. Choosing SAC saves roughly R$227,678 — over half the price of the property itself.
The trade-off is the opening payment: SAC starts 26% above PRICE. Since Brazilian banks approve loans against the largest installment in the contract, SAC requires meaningfully more documented income for the exact same property.
| Term | PRICE payment | PRICE total | SAC first | SAC last | SAC total |
|---|---|---|---|---|---|
| 15 years | R$3,533.61 | R$636,049.77 | R$4,572.85 | R$1,793.31 | R$572,953.84 |
| 20 years | R$3,190.84 | R$765,802.25 | R$4,128.40 | R$1,344.98 | R$656,805.94 |
| 30 years | R$2,922.74 | R$1,052,187.73 | R$3,683.96 | R$896.65 | R$824,510.14 |
| 35 years | R$2,869.46 | R$1,205,171.83 | R$3,556.97 | R$768.56 | R$908,362.24 |
Rates, TR indexation and what the calculator leaves out
Brazilian mortgage rates are quoted as a nominal rate plus TR (Taxa Referencial), a benchmark that indexes the outstanding balance. A contract advertised at "11% a.a. + TR" therefore costs more than 11% whenever TR is above zero. The calculator applies only the nominal rate you enter.
Two insurance policies are mandatory and billed inside every installment: MIP (death and permanent disability, priced on the borrower age and outstanding balance) and DFI (physical damage to the property). A monthly administration fee, property appraisal, ITBI transfer tax and registry costs sit on top.
All of that is captured by the CET (Custo Efetivo Total), the effective annual cost Brazilian lenders are legally required to disclose before signing. Compare offers on CET, never on headline rates. Subsidized Minha Casa Minha Vida lines carry much lower rates than the market default used here.
Which system should you choose?
If you can comfortably afford the SAC opening payment, take SAC. It costs less in total, the balance falls faster, and every month after the first is cheaper than the one before — a real advantage against inflation and a stronger position if you later refinance or sell.
PRICE makes sense when the budget is tight today but income is expected to grow, when you want maximum predictability, or when you plan to sell within a few years and total interest matters less than monthly cash flow.
Either way, shortening the term is the single biggest lever. Cutting a 30-year loan to 15 years on the example above saves about R$416,000 on PRICE and about R$252,000 on SAC. Early prepayments — including FGTS withdrawals, which Brazilian workers may apply to a mortgage every two years — compound that saving further.
Frequently asked questions
What is the difference between SAC and PRICE?
PRICE has a fixed monthly payment for the whole term. SAC repays a constant amount of principal each month, so the payment starts higher and declines every month. For the same rate and term, SAC always costs less in total interest, but demands a bigger payment at the start.
How much cheaper is SAC?
On a R$320,000 loan at 11% per year over 30 years, SAC totals R$824,510 against R$1,052,188 for PRICE — about R$227,678 saved. The gap widens with longer terms and higher rates, and narrows on short loans.
How does the calculator convert the annual rate?
Using the compound equivalent monthly rate, i = (1 + annual rate)^(1/12) − 1, which is the Brazilian mortgage convention. An 11% annual rate becomes 0.873459% per month — not 0.9167%, which a simple division by 12 would give.
Are TR, insurance and fees included?
No. Results are nominal and based solely on the rate you enter. Real contracts add TR indexation of the outstanding balance, mandatory MIP and DFI insurance, and a monthly administration fee. Your actual installment and CET will be higher than the figures shown here.
Sources
Mathematical estimate of the SAC and PRICE amortization systems using the nominal rate entered. Excludes TR indexation, mandatory MIP and DFI insurance, administration fees, transfer taxes and every other component of the CET. Actual contract costs will be higher. Not financial advice.
Related calculators
Also available in Portuguese: Calculadora de Financiamento Imobiliário — SAC × Price