⏳ Deferred Payment Loan Calculator
Calculate how much you’ll owe on a deferred payment loan after interest accrues during the deferment period, before any payments are made.
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What is a Deferred Payment Loan?
A deferred payment loan lets a borrower delay making payments for a set period (deferment), during which interest typically still accrues and is added to the balance, a process called capitalization.
The Formula
Balance Due = Principal × (1 + Annual Rate)Deferral Years, assuming annual compounding of unpaid interest during the deferment period. Interest Accrued is simply the balance due minus the original principal.
Note: Actual loan terms vary — some loans compound interest monthly or don’t capitalize interest during deferment. This tool is for general educational and planning purposes only.
Last reviewed August 2026