Deferred Payment Loan
Use this calculator to determine your payment for a loan with a deferred payment
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: 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.
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.