How it works and how to read it

The math: whether it’s a mortgage, an auto loan, or a personal loan, amortization uses the same French system (fixed installment of principal + interest). What changes between products isn’t the formula — it’s risk: real collateral (a mortgage or a lien) lowers the rate because it lowers the lender’s risk.

The inputs: the Effective Annual Rate (EA) is what Colombian banks report. GMF (the 0.4% financial transaction tax) is charged on disbursement; insurance is calculated month by month on the outstanding balance. If you pick a variable rate, the reference index (IBR/DTF/CPI) is purely informational — the calculation uses the EA you enter plus the annual variation you estimate.

How to read the result: set up Simulator A and B with different conditions and compare them on the Comparison tab — the Total Paid over the life of the loan, not the monthly installment, is what actually measures how much each option costs you.

Simulator A
Simulator B (Compare)
Comparison
E.g. 1.5 if you expect it to rise 1.5 pts each year.
Extra payments (optional)
Extra payments (optional)

Calculate Simulator A and Simulator B first to see the detailed comparison here.

ItemSimulator ASimulator BDifference
Calculate both simulators first

Simulator Results

Initial installment (approx.)
$0
Total interest
$0
Additional costs
$0
Total paid
$0

Monthly cash flow (amortization)

Calculated using the French amortization system on the Effective Annual Rate, including GMF tax, insurance, and origination costs to reflect the real total cost of credit. This is an estimate — it does not constitute a loan offer.
Full report

Need to evaluate a real refinance or purchase?

This demo simulates up to two scenarios with data you enter. The full report includes an analysis of your real borrowing capacity, a comparison against live market offers, and a review session with me. Subscribe to the Daily Briefing and I’ll let you know when it’s available.