Loan Moratorium Calculator

An EMI holiday is not free. See exactly what pausing your instalments adds to the loan.

Cost of a 6-month pause
₹1,37,557
added to your outstanding balance
Your balance grows from ₹30,00,000 to ₹31,37,557. Keep the same EMI and the loan runs 1 yr 7 mo longer; keep the same end date and the EMI rises by ₹1,395.
Balance before the pause₹30,00,000
Interest accrued during the pause₹1,37,557
Balance after the pause₹31,37,557
Option 1 — same EMI, longer tenure+1 yr 7 mo
Option 2 — same tenure, higher EMI₹31,823 /mo
Extra interest over the loan₹4,30,192

About the Loan Moratorium Calculator

A moratorium pauses your EMIs for an agreed period. It is a genuine relief in a cash flow crisis, but it is not a holiday from the loan — interest continues to accrue on the outstanding balance every single month, and the unpaid interest is added to the principal.

When the pause ends you choose between a longer tenure at the same EMI or a higher EMI over the original tenure. This calculator shows both, along with the extra interest the pause adds over the life of the loan.

The formula

Balance after moratorium = P × (1 + R)^M
MMonths paused
RMonthly rate

The compounded interest is capitalised, so you then pay interest on the interest.

Things worth knowing

1
Ask whether the lender capitalises the interest or bills it separately. Separate billing is much cheaper.
2
Even a partial payment during the pause materially reduces the damage.
3
Confirm in writing that the moratorium is a formal restructuring and will not be reported as a default.

Frequently asked questions

No. Interest accrues throughout and is usually added to your principal, so you end up paying interest on that interest. The calculator quantifies it above.

A formally granted moratorium is reported as a restructuring rather than a default, which is far better than missed EMIs. Simply not paying, without approval, damages the score badly.

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