Deferred Payment Loan Calculator - Payment After Deferral

A deferred-payment loan lets the borrower postpone regular principal-and-interest payments for a stated number of months. Interest usually still accrues, so the balance at the first payment is larger than the amount originally borrowed. Student loans in some grace periods, construction loans, and promotional consumer loans often work this way. The deferred payment loan calculator capitalizes interest during deferral and then amortizes the new balance over the remaining term. The deferred balance is original principal × (1 + periodic rate)^deferral periods. Periodic rate is the annual rate divided by payment frequency, and deferral periods convert months into that same frequency. Remaining payments equal total payments over the full term minus deferral periods. The later payment is the standard amortizing amount on the deferred balance: payment = balance × i ÷ (1 − (1 + i)^(−remaining payments)). Estimated total interest is remaining payments × payment − original principal, so it includes both capitalized deferral interest and interest paid during amortization. Use the calculator before accepting a “payments start later” offer, when comparing a 6-month versus 12-month deferral, or when a student or construction loan will capitalize unpaid interest. Monthly frequency is the usual consumer case; annual or quarterly frequency is more common for some business notes. If the contract requires interest-only payments during deferral, this capitalized-interest model will overstate the later balance. Fees, insurance, and negative amortization caps are not included. Some contracts forbid interest capitalization or freeze the rate. The stated term is measured from origination, so a 10-year loan with 12 months of deferral is repaid over the remaining nine years, not over a fresh 10-year schedule. Confirm the contract’s deferral rules before treating the payment as a quote. A practical review is to calculate the payment with deferral and again with deferral set to zero, then compare the two payments and the extra interest. That difference is the price of waiting. If your note uses simple interest without capitalization, the later balance will be lower than this compound model. Keep the term in years and the deferral in months on the same origination clock, and confirm that remaining payments stay positive—deferral cannot consume the entire term.