Loan Calculators

Deferred Payment Loan

Use this calculator to determine your payment for a loan with a deferred payment

Inputs
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Estimates only. Adjust any value to recalculate instantly.

Results
Payment after deferral $439.19 vs $405.53 with no deferral
Loan amount $20,000
Balance after deferral $21,660 +$1,660 accrued
Monthly payment $439.19
Cost of deferring $2,020
Where the extra cost comes from
Where the extra cost comes from Original principal: $20kInterest during deferral: $1.7kInterest while repaying: $4.7k
  • Original principal $20k
  • Interest during deferral $1.7k
  • Interest while repaying $4.7k

Deferring 12 months lets $1,660 of interest capitalize onto your balance before repayment even begins — which is why the payment and total cost rise. Deferral is convenient but rarely free.

Repayment schedule (after deferral)View table
YearPrincipalInterestBalance
1$3,670$1,600$17,990
2$3,975$1,296$14,015
3$4,305$966$9,711
4$4,662$608$5,049
5$5,049$221$0

How the deferred payment loan calculator works

During the deferral period no payments are made, but interest still accrues and is added to your balance. The calculator capitalizes that interest, then amortizes the larger balance over your repayment term, revealing the higher payment and the cost of waiting.

Worked example

Worked example: with loan amount of $20,000, monthly payment of $450 and interest rate of 8.00%, the deferred payment loan calculator shows payment after deferral of $439.19.

Loan amount
$20,000
Balance after deferral
$21,660
Monthly payment
$439.19
Cost of deferring
$2,020

The formula

Balance after deferral = amount × (1 + monthly rate)^deferral months. That grown balance is then amortized with Payment = P × r ÷ (1 − (1 + r)⁻ⁿ).

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.

Frequently asked

Questions about the deferred payment loan

What is a deferred payment loan?

One where your first payment is delayed by a set period. Interest usually still builds during that time and is added to what you owe, raising both the payment and total cost.

Is deferring payments a good idea?

It eases short-term cash flow but is rarely free — capitalized interest makes the loan cost more. The calculator shows exactly how much the convenience adds.

Does interest always accrue during deferral?

On most loans yes. Only truly subsidized arrangements pause interest; otherwise it compounds onto your balance, which this tool assumes.

Is the Deferred Payment Loan free to use?

Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.