# Deferred Payment Loan Calculator

URL: https://speedycalculator.com/calculators/finance/deferred-payment-loan/
Last updated: 2026-10-25

> The deferred payment loan calculator works out what happens when payments on a loan are deferred – the interest that accrues, the balance when repayment starts (if interest is capitalized), and the payment and total cost afterwards.

## Inputs

- Loan amount
- Interest rate (%)
- Compounding frequency
- Deferral period (months)
- Interest during deferral
- Repayment term after deferral (years, months)

## Results

- Interest during the deferral
- Monthly interest payment during the deferral
- Balance when repayment starts
- Monthly payment after the deferral
- Total interest
- Total paid

## Formula

```
Accrued interest = L × ((1 + i)^deferral months − 1) (compounding) or L × r × months ÷ 12 (simple)
Capitalized: repayment balance = L + accrued interest; interest paid monthly: balance stays L; interest-free: balance stays L
Payment = pmt(i, repayment months, balance)
```

## Explanation

Student loans, some business loans and buy-now-pay-later offers allow deferment. Unless the deferral is interest-free, interest keeps growing – and if it is capitalized you then pay interest on interest.

### How to use the Deferred Payment Loan Calculator

- **Loan amount**
- **Interest rate**
- **Compounding frequency**
- **Deferral period**
- **Interest during deferral**
- **Repayment term after deferral**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the loan amount, rate, compounding, deferral period, how interest is treated during the deferral and the repayment term afterwards.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterLoan amountAmount in your currencyInterest rateIn %Compounding frequencyChoose one: Yearly, Semi-annually, Quarterly, Monthly …Deferral periodIn monthsInterest during deferralChoose one: Accrues and is capitalized, Paid monthly, Interest-free (subsidized)Repayment term after deferralUnits: years, months

### What each result means

- **Monthly payment after the deferral** = pmt([Monthly rate], [Repayment term after deferral], [Balance when repayment starts])
- **Total interest** = [Monthly payment after the deferral]×[Repayment term after deferral] - [Balance when repayment starts] + [Interest during the deferral]
- **Total paid** = [Monthly payment after the deferral]×[Repayment term after deferral] + [Monthly interest payment during the deferral]×[Deferral period]

### Example values

How the main result changes when **Loan amount** changes and everything else stays at the example values above:

Loan amountMonthly payment after the deferral15,000193.922,500290.8530,000387.837,500484.7545,000581.760,000775.6

## Worked example

Inputs — Loan amount: $30,000; Interest rate: 6.5 %; Compounding frequency: Monthly; Deferral period: 24 months; Interest during deferral: Accrues and is capitalized; Repayment term after deferral: 10 years.

Results — Interest during the deferral = $4,152.87; Monthly interest payment during the deferral = $0.00; Balance when repayment starts = $34,152.87; **Monthly payment after the deferral = $387.80**; Total interest = $16,535.87; Total paid = $46,535.87.

## FAQ

**What is a deferred payment loan?**
A loan whose payments start after an initial period.

**Does interest accrue during deferment?**
Usually yes, except on subsidized or interest-free deferrals.

**What does capitalized interest mean?**
Unpaid interest added to the principal, so you pay interest on it later.

**What formula does the Deferred Payment Loan Calculator use?**
Accrued interest = L × ((1 + i)^deferral months − 1) (compounding) or L × r × months ÷ 12 (simple).


## Sources

- [Federal Student Aid – Deferment and forbearance](https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief)