Loan Simulator

How is it computed?

It builds on the Price table: Installment = V × (i × (1+i)^n) / ((1+i)^n − 1). Here V is the value, i the monthly rate and n the term.

The approximate CET, in turn, is the equivalent annualized rate. In real life banks also tack on IOF (around 3.38%/year) and fees; this simulator leaves those costs out.

When deciding, always go by the official CET your bank provides.

A complete guide to personal loan simulation in Brazil

Simulating a loan before signing is the most effective protection a borrower has against bad credit decisions. Brazil has one of the world's largest banking spreads, and rates differ dramatically depending on the modality, borrower profile, term and institution. A serious simulation must convert the advertised monthly nominal rate into an effective annual rate, add IOF and bank fees, and reconstruct the Custo Efetivo Total (CET) defined by Brazilian Central Bank (BACEN) rules. This guide explains the credit modalities, how interest compounds, how PRICE and SAC behave, what hides inside the CET and how to read a BACEN rate ranking before signing.

Types of personal credit in Brazil

There is no single product called "loan" in Brazil. Each modality has its own pricing logic, collateral requirements and legal framework, and the difference between the cheapest and the most expensive can exceed 150 percentage points per year.

• Unsecured personal loan (credito pessoal nao consignado): highest risk for the bank, so the highest rate. Procon-SP reported an average of 8.30% per month (about 160% per year) in early 2026.
• Payroll-deducted loan (consignado), public sector and INSS: installments are deducted directly from the salary or retirement benefit, drastically reducing default risk. The 2026 cap for INSS retirees is 1.85% per month, regulated by the CNPS.
• Private-sector payroll loan (consignado privado / Credito do Trabalhador): created under Law 10,820/2003 and recently expanded for CLT workers. BACEN data shows an average of 3.4% per month in May 2026, with wide variation across banks Procon-SP found that the most expensive offer was more than double the cheapest.
• Secured loans (home equity, auto equity): the borrower pledges a paid-off property or vehicle. Rates are dramatically lower (usually 1.0% to 1.8% per month) but the asset can be lost on default.
• FGTS anniversary withdrawal anticipation (saque-aniversario): the worker anticipates several years of the FGTS anniversary withdrawal in exchange for a discounted rate, usually between 1.5% and 1.99% per month.
• Income-tax refund anticipation: short-term product (typically up to 12 months) priced between 1.7% and 2.5% per month, repaid when the Receita Federal deposits the refund.
• Overdraft (cheque especial) and revolving credit-card debt: not properly "loans" but emergency credit lines with the worst rates in the system the revolving credit card averaged 14.8% per month in early 2026, more than 375% per year.

How interest is calculated: nominal, effective and compounding

Brazilian consumer credit uses compound interest. A monthly rate of 3% does not become 36% per year by simple multiplication; the correct conversion is (1 + 0.03)^12 - 1 = 42.58%. The advertised rate is usually the nominal monthly rate, while the effective annual rate, used to compare offers across terms, is always higher. The formula: i_annual = (1 + i_monthly)¹² - 1. Each installment combines principal (amortization) and interest computed over the outstanding balance, so the first installments are mostly interest and the last ones mostly principal.

PRICE versus SAC amortization

Two systems dominate the market. The PRICE table (French system) produces equal installments from start to finish, which most consumers prefer because it is predictable and fits a fixed budget; inside each installment the interest share shrinks and the principal share grows. SAC (Sistema de Amortizacao Constante) keeps the principal slice constant, so installments fall from the first to the last month. SAC pays less total interest because the balance is reduced faster, but demands more cash up front. For short loans (12-36 months) the difference is small; for long financings (60+ months) SAC can save thousands of reais.

CET: the only number that matters when comparing offers

The Custo Efetivo Total, regulated by CMN Resolution 4,881/2020 (which replaced the older 3,517/2007 and 4,677/2018 framework), is the annualized rate that equates the present value of all future installments to the cash the borrower actually receives. In plain language, CET is the internal rate of return of the financial flow seen from the consumer's side. By law, every Brazilian bank must disclose the CET before the contract is signed, expressed as an annual percentage. Two offers with the same headline monthly rate can have very different CETs because the CET incorporates everything the borrower pays:

• Contract interest itself
• IOF: a federal financial-operations tax of 0.38% on the principal plus 0.0082% per day, capped at 365 days effectively about 3.0% extra on a 12-month loan
• Tarifa de Cadastro / Abertura de Credito (TAC), where still allowed
• Insurance, especially the seguro prestamista that covers the balance in case of death or disability
• Registration and appraisal fees in secured operations

When using this simulator, always compare CETs and not raw monthly rates. A loan advertised at 2.5% per month with heavy insurance and TAC can easily end up more expensive than another advertised at 2.9% per month with no extras.

Comparing offers: BACEN ranking and multi-bank quotes

BACEN publishes a weekly ranking of average rates per institution and modality on its website. Before signing, check where the offer sits in your modality the spread between cheapest and most expensive can reach 5 to 8 percentage points per month. A productive workflow: simulate here with three or four rates from the BACEN ranking, then request a formal proposal (with full CET) from those banks. Online marketplaces also pull pre-approved offers from several banks at once.

Risks: snowball effect, debt cycling and the revolving credit card

Borrowing to pay off another debt only makes sense when the new CET is materially lower than the old one. The classic trap is the revolving credit-card balance: at 375%+ per year, 1,000 reais unpaid becomes around 4,750 reais in twelve months. Taking a personal loan at 8% per month (160% per year) to clear it is mathematically a gain, but only if the borrower stops paying minimum on the card. Warning signs: total installments above 30% of net income, new loans to pay current installments, and recurrent overdraft use. The Cadastro Positivo and the public Desenrola Brasil program help renegotiate.

Frequently asked questions

Why is my installment higher than (loan / months)? Because each installment also pays interest on the outstanding balance. The simulator uses the standard PRICE formula P = V x i / (1 - (1 + i)^-n).

Is the simulator's CET exact? The simulator estimates CET with the standard IOF (0.38% + 0.0082%/day) and the rate you type. The bank's official CET will add its specific fees and insurances. Always confirm with the institution.

Can I prepay a loan in Brazil? Yes. Resolution CMN 5,112/2023 confirms the consumer's right to prepay any installment with proportional discount on future interest. Banks must accept it.

What is the cheapest legal modality today? Home-equity loans (under 1.5% per month) and INSS payroll loans (1.85% cap) lead the BACEN ranking; the most expensive remains the revolving credit-card balance.

Does negative score on Serasa block me from borrowing? It blocks most unsecured lines, but secured loans (home/auto equity) and payroll loans remain accessible because the credit risk is mitigated by collateral or by source-deduction.