Amortization Calculator

The Illusion of the Installment

If you have already paid the R$ 3,000 installment of your home loan, checked the app the next day, and noticed that the Outstanding Balance only dropped by R$ 500, you felt the pain of the lack of amortization.

What is Amortize?

Amortize literally means \"to kill\" the principal debt. At the beginning of every month, the bank charges an interest rate that applies to the huge total you still owe. When you pay your fixed installment, the bank firstdiscount the interest you owed him (that money is lost in the wind), and only what remains from the installment is actually used to amortize the debt. Use the calculator to see how this mathematical breakdown happens within the banking system.