How to use the consortium calculator
- Enter the asset value (property, vehicle, etc.) you want to acquire
- Set the term in months and the total administration fee of the consortium
- Configure the annual correction (INCC for real estate, IPCA for other assets)
- Optionally, add a bid (to anticipate contemplation) or premium (if buying a contemplated letter)
- Click 'Calculate' to see the complete installment table and financial summary
What is a consortium and how it works
A consortium is a planned purchase method where a group of people come together to acquire assets (real estate, vehicles, etc.) without needing traditional bank financing. Each participant pays monthly installments that are divided between the common fund (for contemplation) and the administration fee.
Contemplation can happen by lottery or bid. When contemplated, you receive the credit letter to acquire the asset. Installments continue to be paid until the end of the term, but now you already have the asset in hand.
An important advantage of consortiums is that there are no interest rates like in traditional financing. The cost is in the administration fee and, eventually, the premium (if buying a contemplated letter) or bid (to anticipate contemplation).
How consortiums work: common fund, administration fee, and contemplation
Consortiums work with three main components:
Common Fund
Part of the installment that goes to the common fund, used to contemplate participants. When you are contemplated, you receive the accumulated value from the common fund to acquire the asset.
Administration Fee
Fee charged by the consortium administrator to manage the group. It's calculated on the total asset value and distributed throughout the installments. There are no interest rates as in financing, but this fee represents the cost of the consortium. Typical values range between 12% and 20% of the asset value.
Contemplation
The moment when you receive the credit letter to acquire the asset. It can happen by lottery (monthly) or by bid (when you offer an extra amount to be contemplated earlier). After contemplation, you continue paying installments, but you can already use the asset.
Bid and Premium: differences and when to use
Bid and premium are two ways to anticipate or facilitate contemplation in a consortium:
Bid
Extra amount you pay to be contemplated before the lottery. The bid reduces the consortium term, as you pay additional installments in advance. It's a strategy for those who need the asset faster.
Premium
Amount paid to buy an already contemplated consortium letter from another participant. When buying a contemplated letter, you receive the asset immediately, but pay an additional amount (premium) beyond the asset value. It's useful when you need the asset quickly and don't want to wait for lottery or give a bid.
Annual correction: INCC, IPCA, and installment adjustments
Consortium installments are corrected annually by inflation indices:
- INCC (National Construction Cost Index): used for real estate consortiums, reflects construction cost variations
- IPCA (Broad National Consumer Price Index): used for other types of consortiums (vehicles, services, etc.)
- The correction is applied annually (every 12 months), increasing the value of future installments. That's why extra amortizations can generate savings by avoiding adjustments on larger amounts.
Extra amortization in consortium: reduce term or reduce installment
Just like in financing, you can make extra amortizations in a consortium to reduce total cost or term:
Two modes of extra amortization:
- Reduce term: installments remain the same value, but you finish earlier. Ideal when you have extra money and want to pay off faster.
- Reduce installment: the term remains the same, but future installments become smaller. Useful when you want to ease monthly cash flow.
Extra amortizations in consortiums generate savings because they avoid annual correction (INCC/IPCA) on larger amounts. The more you prepay, the more you save on future adjustments.
Practical simulation example
Let's simulate a real estate consortium to understand the numbers:
Example scenario:
- Property value: R$ 500,000
- Term: 180 months (15 years)
- Administration fee: 15% of asset value
- Annual correction: 6% (estimated INCC)
- Contemplation: month 12 (with R$ 20,000 bid)
What to look for in results:
- First and last installment: see how annual correction increases installments over time
- Total paid vs asset value: compare total cost (including administration fee and bid) with property value
- IRR (Internal Rate of Return): indicates financial return considering the future value of the property
- Savings with extra amortizations: simulate scenarios with additional amortizations to see how much you can save
Related tools
Explore other financial calculators that can help with your decision:
Important notice
This calculator is educational and may not include all costs and specific rules of your consortium contract. Additional fees, contemplation conditions, bid rules, and other clauses may change actual values. Use results as an estimate and validate with the consortium administrator.