Moratorium Calculator - Deferred Loan Interest
Estimate interest accrued during a payment moratorium, the deferred balance, and the revised monthly payment after the pause.
Enter principal, annual rate, moratorium months, and total loan term in months to see accrued interest and the new payment after the holiday ends.
Moratorium Calculator - Deferred Loan Interest
Estimate interest accrued during a payment moratorium, the deferred balance, and the revised monthly payment after the pause.
About the Moratorium Calculator
The moratorium calculator estimates what happens when a borrower pauses scheduled loan payments for a defined number of months while interest continues to accrue. Lenders, housing counselors, and borrowers use a payment holiday model after job loss, disaster relief, or a contractual EMI freeze. Enter the outstanding principal, annual interest rate, moratorium length in months, and the original total term in months. The calculator capitalizes simple interest for the pause, then re-amortizes the higher balance over the remaining months.
Accrued interest during the moratorium is P × r × m / 12, where P is principal, r is the annual rate as a decimal, and m is moratorium months. That is simple interest on the starting principal, not compound interest inside the holiday. Deferred balance is principal plus accrued interest. The revised monthly payment uses the standard fixed-payment formula on that deferred balance over (total term − moratorium months). Payment increase is the new payment minus the original payment that would have amortized the starting principal over the full original term. Currency is a label only; results are formatted in dollars.
Use the moratorium calculator before accepting a relief offer, when comparing a payment freeze with a term extension, or when explaining why a post-holiday EMI is higher. A six-month freeze on a 20-year loan does not remove six months of interest; it stacks that interest onto the balance and shortens the remaining amortization window unless the lender extends the term. Some programs capitalize interest, some collect it as a balloon, and some subsidize it. Read the servicer letter.
This model does not apply missed-payment late fees, credit-reporting rules, escrow shortages, or income-driven repayment. It assumes no principal is paid during the holiday and that the rate stays fixed. If interest is compounded monthly during the pause, actual accrued interest is higher than the simple-interest figure. Recalculate with the servicer’s remaining term if the lender extends maturity instead of compressing the leftover months. The result is a planning estimate, not a modified-loan disclosure.
Moratorium Calculator Examples
These worked examples use the same simple-interest holiday and re-amortization path as the moratorium calculator.
| Inputs | Result | Why it matters |
|---|---|---|
| $250,000 principal, 6% rate, 6-month moratorium, 240-month term | Accrued interest $7,500.00; revised payment $1,869.39; increase $78.31 | Six months of unpaid interest is added to principal, then repaid over the remaining 234 months. |
| $400,000 principal, 7% rate, 12-month moratorium, 360-month term | Accrued interest $28,000.00; revised payment $2,876.72; increase $215.51 | A full-year freeze on a 30-year loan adds a large capitalized balance and a noticeably higher EMI. |
| $150,000 principal, 5.5% rate, 3-month moratorium, 180-month term | Accrued interest $2,062.50; revised payment $1,256.06; increase $30.43 | A short holiday on a 15-year term still raises the payment, but the dollar impact stays modest. |
How to Use the Moratorium Calculator
- Enter the current principal and the annual interest rate on the loan.
- Enter the moratorium length in months and the original total term in months, not years.
- Select Calculate to see accrued interest, deferred balance, revised payment, and the payment increase.
- Compare the increase with a term-extension alternative from the servicer before pausing payments.
Moratorium Calculator FAQ
Is moratorium interest simple or compounded?
The estimate uses simple interest on the starting principal for the holiday months. If the lender compounds monthly during the freeze, accrued interest will be higher than the figure shown.
Why must total term be longer than the moratorium?
The remaining amortization period is total term minus moratorium months. If those values are equal or reversed, there is no remaining term over which to repay the deferred balance.
Does a moratorium always raise the monthly payment?
Under this capitalization-and-re-amortize method, yes, because interest is added and fewer months remain. A lender that extends the maturity date can keep the payment closer to the original amount.
Are term inputs in months or years?
Both the moratorium period and the total loan term are in months. A 20-year loan should be entered as 240, and a 30-year loan as 360.
Does the moratorium calculator include fees or credit impact?
No. Late fees, forbearance admin charges, and credit-reporting outcomes depend on the program. Confirm those terms with the servicer before relying on the payment estimate.