The Deferred Payment Loan Calculator helps you determine the total interest, the amount due at loan maturity, and provides an amortization schedule. You can adjust the loan amount, interest rate, loan term, and any deferred months to see how interest accrues and balances grow over time.
- Loan Amount (P): The total amount borrowed.
- Interest Rate (r): The annual interest rate applied to the loan, which is converted into a monthly rate for calculations.
- Loan Term (n): The total duration of the loan in months, calculated by multiplying years by 12 and adding any extra months.
- Deferred Months: The number of months after which the loan starts accumulating interest. This will impact how much interest you pay over the loan term.
- Total Interest Paid: The total interest accrued during the entire loan period, calculated by adding the interest paid each month:
Total Interest = Sum of all Interest Payments
- Amount Due at Loan Maturity: The total amount due at the end of the loan term, including the principal and the accrued interest:
Amount Due = P + Total Interest
- Amortization Schedule: The schedule showing how the loan balance grows over time as interest is added, even before principal payments begin. Each month, interest is calculated on the remaining balance:
Interest Payment = Remaining Balance × (r / 12)
Remaining Balance = Previous Balance + Interest Payment