⏸️ Deferred Payment Loan Calculator
Calculate deferred payment loan payments and interest
Months before payments begin
How to Use This Calculator
Enter Loan Amount
Input the principal loan amount - the amount you're borrowing.
Enter Interest Rate and Terms
Enter the annual interest rate, deferral period (months before payments begin), and total loan term (years).
Review Results
See your monthly payment amount (after deferral period), balance after deferral, and total interest. Understand the cost of deferring payments.
Formula
Balance After Deferral = Principal × (1 + r)ⁿ
Monthly Payment = Balance × [r(1 + r)ᵗ] / [(1 + r)ᵗ - 1]
Where:
• r = Monthly interest rate
• n = Deferral period (months)
• t = Remaining loan term (months)
Example Calculation:
If loan $10,000, rate 5%, defer 6 months, term 5 years:
• Balance after deferral = $10,000 × (1.00417)⁶ = $10,253
• Monthly payment (54 months) = $194/month
About Deferred Payment Loan Calculator
A deferred payment loan calculator helps you understand loans with deferred payment periods, where payments don't begin immediately after the loan is taken out. During the deferral period, interest typically continues to accrue, increasing the loan balance. This calculator shows you the balance after the deferral period, monthly payment amount, and total interest cost. Deferred payment loans are common for student loans, some mortgages, and other financing options.
When to Use This Calculator
- Student Loans: Calculate payments for student loans with deferral periods
- Deferred Loans: Understand deferred payment loan terms
- Payment Planning: Plan for payments after deferral period
- Interest Analysis: Understand interest that accrues during deferral
Understanding Deferred Payment Loans
- Deferral Period: Time before payments begin (interest may still accrue)
- Interest Accrual: Interest typically continues during deferral
- Higher Balance: Balance increases during deferral due to interest
- Payment Calculation: Payments based on balance after deferral
Why Use Our Calculator?
- ✅ Payment Planning: See monthly payment after deferral
- ✅ Interest Analysis: Understand interest during deferral
- ✅ Balance Calculation: See balance after deferral period
- ✅ Loan Comparison: Compare deferred vs. immediate payment loans
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is a deferred payment loan?
A deferred payment loan allows you to delay making payments for a specified period (deferral period). However, interest typically continues to accrue during this time, increasing your loan balance. Payments begin after the deferral period ends.
Does interest accrue during deferral?
Yes, in most cases interest continues to accrue during the deferral period, even though you're not making payments. This increases your loan balance, which means you'll pay more in total interest over the life of the loan.
Should I make payments during deferral?
If possible, making payments during deferral (even small ones) can significantly reduce your total interest and balance. Interest that accrues during deferral increases your balance, so paying it prevents that increase.