Loan Moratorium Calculator

Loan Moratorium Calculator

Loan Moratorium Calculator

Work out what a payment break actually costs — and compare extending your tenure against raising your EMI once it ends.

Loan details
Months with no EMI payment. Interest still accrues and compounds monthly, as most lenders apply it.

Enter your loan details and select Calculate to see how the payment break changes your EMI and total cost.

How a payment break changes what you owe

During a moratorium, your lender pauses your EMI — but the loan doesn’t stop accruing interest. Each month you skip, interest is calculated on your outstanding balance and typically added back into the principal, so the next month’s interest is calculated on a slightly larger amount. Over a multi-month break this compounding adds up to more than a simple month-by-month sum would suggest.

Once the break ends, you’re given a choice: stretch the loan out for longer while keeping your EMI unchanged, or keep the original end date and absorb the gap with a higher EMI. Extending the tenure is easier on your monthly budget but usually costs more overall, since you’re paying interest for longer. Raising the EMI clears the debt faster and is typically the cheaper option — if your monthly budget can stretch to it.

This tool illustrates the effect of a payment break using standard reducing-balance EMI math with monthly compounding during the moratorium. Actual terms — including whether interest is capitalised, compounded, or billed separately — vary by lender. Check your loan agreement or ask your lender before making a decision.

Loan Moratorium Calculator Guide

What it does: This tool helps you estimate the impact of pausing your loan repayments during a moratorium period. It shows how your remaining loan balance and total interest will change.

How to Use:

  1. Enter your Loan Amount (e.g., 10,000).
  2. Set your Interest Rate (annual %).
  3. Choose your Loan Tenure (in months or years).
  4. Select the Moratorium Period (how long repayments are paused).
  5. Click Calculate to see results.

Example:

If you have a loan of 10,000 at 8% annual interest for 2 years, and you take a 3-month moratorium, the calculator will show:

  • Revised EMI after moratorium
  • Extra interest due to pause
  • Total repayment amount

Disclaimer: This is an estimate. Actual figures may vary based on your lender's policies. Please reach out to your financial advisor before taking any decision, we don't offer any advice.