Treasury Prefixed Calculator (Brazil)

How Tesouro Prefixado (LTN) returns work

An LTN (Letra do Tesouro Nacional) is a zero-coupon federal bond: each unit pays exactly R$ 1,000 at maturity and you buy it today at a discount. The price formula is P = 1000 / (1 + i)^(d/252), where i is the annual yield agreed at purchase and d is the number of business days to maturity. With Selic at roughly 15% in 2026, a 5-year prefixado typically trades around 12-14% per year — the curve usually slopes down because the market expects rate cuts.

Example: a 5-year LTN at 13% per year, bought for R$ 543, returns R$ 1,000 at maturity — a gross gain of R$ 457, or about 84%. Income tax is regressive (22.5% to 15%) and B3 custody is 0.20% per year (exempt up to R$ 10,000). The variant NTN-F pays semiannual coupons; pure LTN does not. Mark-to-market matters: if Selic expectations rise after you buy, the price drops on the secondary market (negative daily quote). Holding to maturity locks in the rate regardless.

Brazilian context

Prefixado is the right pick when you expect Selic to fall: you lock in today's high rate and capture price appreciation as future rates drop. It is widely used for long-horizon goals (retirement, children's education) when the investor can hold to maturity. Buying just before a Copom rate-cut cycle is a classic strategy. The risk is rate hikes: a 1 pp jump in the long-end curve can drop the price 5-10% intraday on a 5-year bond.

FAQ

What happens if Selic goes up after I buy? The market price falls (mark-to-market loss) but the contractual yield stays the same if you hold to maturity. Selling early at that point realizes the loss.

LTN or NTN-F? NTN-F pays semiannual coupons — useful for cash flow, but the coupons are taxed at the highest IR bracket. LTN reinvests implicitly and is more tax-efficient for accumulation.

Is there FGC coverage? No. Tesouro Direto carries sovereign risk, which is the lowest risk inside Brazil — FGC is not needed at that level.

Can I redeem before maturity? Yes, every business day at the Treasury's buyback price (mark-to-market). You may earn more or less than the contracted rate depending on how the yield curve moved since purchase.