SAC Simulator
Constant Amortization System with decreasing installments.
What is the SAC Table?
The Constant Amortization System (SAC) is the preferred model in Brazilian real estate financing (such as Caixa Econômica Federal). In it, the bank divides the value of your property into perfectly equal slices. Every month you pay one of these slices + the interest generated that month.
Why does the installment drop every month?
Since you are aggressively and consistently paying off the debt (the same repayment amount every month), the total principal that generates interest keeps getting smaller. Consequently, the amount of interest included in your installment drops monthly. That is why the first installment of the SAC Table is always the most expensive of all, but in the last months of the contract, you end up paying a tiny installment. In the long run, the SAC Table is much cheaper than the PRICE Table.