First consórcio payment
- Input
- R$ 300 mil, 180 meses, 18% + 2%
- Expected output
- R$ 2.120 (2.000 + 120 de seguro)
It rises with the index and reaches R$ 3,705 on the last one.
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consorcio or loan which pays off more
Fill in the credit letter, term and fees of the consórcio and the down payment, term and interest of the loan in the calculator. Instead of comparing payments, it brings everything to present value and shows the cost of every possible contemplation month.
It rises with the index and reaches R$ 3,705 on the last one.
With 0.04% monthly insurance and a R$ 25 fee.
Present values; investing only delivers the home in month 120.
The cost grows a lot when contemplation drags.
The loan figure includes the R$ 60,000 down payment.
Consórcio, loan and investing the payment.
It depends on when you need the asset and what money earns. For a R$ 300,000 home, a 180-month consórcio with an 18% admin fee and 2% reserve fund, a 15-year SAC loan at 11.5% with R$ 60,000 down, index and appreciation of 4.5% and fixed income at 10% gross, the consórcio contemplated in month 36 costs about R$ 289,000 in today's money, against R$ 350,000 for the loan. Investing the payment and buying in cash costs about R$ 203,000, but the home only arrives in month 120. The more urgent the asset, the more the loan makes sense.
No. In the example it was cheaper in every contemplation month, but that depends on admin fee, bank interest, yield and the cost of waiting. With high fees and low interest the order can flip. Replace the numbers with your offer.
A consórcio only releases the credit on contemplation, by draw or bid. If you cannot wait, fill in the cost of waiting (rent, for example): it adds that expense until contemplation and shows the month from which the consórcio stops paying off.
It is the sum of everything you pay, each amount brought to today by a discount rate. Since the asset is the same on all three paths, the lowest present value ends with more wealth.
In today's money, the lowest-cost path is: Invest the payment and buy in cash, at R$156,456.
Consórcio contemplated in month 36: R$231,822, against R$302,868 for the loan. That is R$71,046 less.
In any contemplation month, the consórcio comes out cheaper than the loan under these assumptions.
Investing the consórcio payment and buying in cash takes until month 104 to own the asset and costs R$156,456.
Assumptions: asset appreciates 4.7% a year, credit adjusted 4.7% a year, fixed income at 14.8% gross, or 12.6% after the 15% tax, which is also the discount rate.
R$231,822
R$302,868
R$156,456
Present value: the sum of everything that leaves your pocket (down payment, payments, bid, top-up and waiting cost), discounted at 12.6% a year. Lower present value means more wealth at the end, because the asset is the same on all three paths.
If contemplation depended only on a draw, with equal odds every month, the expected cost would be R$225,404 (best month: R$221,402; worst: R$233,514).
| Month | Present-value cost | Versus the loan | Effective cost p.a. | Total paid in contract |
|---|---|---|---|---|
| 1 | R$222,129 | -R$80.7K | 7.5% | R$519,896 |
| 6 | R$227,558 | -R$75.3K | 8.1% | R$519,896 |
| 12 | R$233,514 | -R$69.4K | 8.8% | R$519,896 |
| 24 | R$232,638 | -R$70.2K | 9.8% | R$519,896 |
| 36 | R$231,822 | -R$71.0K | 11.3% | R$519,896 |
| 48 | R$231,064 | -R$71.8K | 13.8% | R$519,896 |
| 60 | R$230,359 | -R$72.5K | 18.1% | R$519,896 |
| 72 | R$229,703 | -R$73.2K | 26.7% | R$519,896 |
| 96 | R$228,526 | -R$74.3K | n/a | R$519,896 |
| 120 | R$227,508 | -R$75.4K | n/a | R$519,896 |
| 150 | R$223,740 | -R$79.1K | n/a | R$519,896 |
| 180 | R$225,525 | -R$77.3K | n/a | R$519,896 |
Green: the consórcio costs less than the loan. Amber: it costs more. Effective cost n/a: what you would already have saved covers over 70% of the credit, and the rate stops being informative.
Simulation with editable assumptions, not advice. Check fees, index, bid and contemplation rules in the group contract and in the bank offer.