How this calculator works
Enter the balance at the start of the pause. Interest either compounds into the loan balance or is paid monthly during the pause. A supplied fee is added when repayments resume. The chosen strategy increases instalments to retain the original end date, restarts the original tenure after the pause, or retains the old instalment and extends repayment. The compounding convention can change after the pause. Payment intervals and dates use a 365.25-day model year; a fractional final repayment interval is paid at the next scheduled payment. Actual lender moratorium terms may differ.
Formula
Annual growth log L = m ln(1 + r/m). Pause balance with capitalized interest = P exp(L x pause months/12) + fee. New payment = balance x i/[1 - (1 + i)^(-remaining periods)].
Worked example
An INR 1,000 balance at a monthly-compounded 12% annual rate grows to INR 1,020.10 after two paused months. If interest is paid monthly instead, the balance stays INR 1,000 and INR 20 is paid during the pause.
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Frequently asked questions
Does a moratorium cancel interest?
This model assumes interest continues. It is either paid during the pause or added to the balance.
What if I keep my current payment?
The model extends the repayment period, provided the payment exceeds interest on the post-pause balance.
Can I use a lender-specific holiday?
Only if its interest, fee and compounding rules match these assumptions. Use the lender contract for the binding schedule.