revolving credit vs installment payment
Revolving credit and installment plans look like two similar ways to postpone a bill, but one compounds interest on interest every cycle while the other locks the installment amount for the whole term, and that structural difference is exactly what this page measures in real currency.
The debt nearly triples before reaching zero because every month recalculates interest on a balance that already includes last month interest.
Swapping revolving for installments in this scenario saves R$ 5,944.37, because the monthly rate drops from 15% to 3%.
Even at a lower rate than the first example, 12% monthly still compounds into 289.6% a year, which explains the R$ 956.78 gap between the two paths.
Revolving credit is automatically triggered when the full statement is not paid. The remaining balance accrues interest at the revolving rate, one of the highest in the financial market, potentially exceeding 400% per year.
Because every month the bank charges interest on a balance that already contains the previous month interest. Compounding 15% monthly over 12 months, (1.15)¹² − 1 works out to 435% a year, far above a simple 15% × 12 sum.
No. Resolução CMN 4.549/2017 and Lei 14.905/2024 limit the time a customer can stay in revolving credit to 1 billing cycle: from the following month, the bank must offer an installment plan for the outstanding balance.
Yes. Since the simulated floor is the higher of 15% of the balance with interest or R$ 50, keeping that pattern repeats the same math every month, and it is exactly the scenario that makes a R$ 3,000 debt take 21 months and nearly triple in value.
⚠️ Revolving credit rates exceed 14%/month in Brazil, among the highest in the world. Avoid using revolving credit whenever possible.
Banco Central do Brasil, credit data. Average market rates 2026.
Balance evolution
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