Moratorium Calculator
Calculate the impact of payment moratoriums on your loans. See how interest accrues during pause periods and understand the total cost implications of deferring payments.
Moratorium Type
Post-Moratorium Plan
Moratorium Impact
Interest Accrued:
$0.00
Payments Saved:
$0.00
Net Cost Increase:
$0.00
Post-Moratorium Analysis
New Loan Balance:
$0.00
New Monthly Payment:
$0.00
Extended Payoff Date:
N/A
Without vs With Moratorium
Without Moratorium:
$0.00 total
With Moratorium:
$0.00 total
Additional Cost:
$0.00
Understanding Loan Moratoriums
A loan moratorium is a temporary suspension or deferral of loan payments. During this period, borrowers may not have to make payments, or may have to make reduced payments. While moratoriums provide short-term relief, they can have significant long-term financial implications.
Types of Loan Moratoriums
Interest-Only Moratorium
- Principal payments paused
- Interest continues to accrue
- Loan balance remains the same
- Common for home loans
Full Payment Pause
- All payments suspended
- Interest accrues and capitalizes
- Loan balance increases
- Used in crisis situations
Partial Payment Moratorium
- Reduced payments required
- Some principal reduction
- Interest may be reduced
- Balanced relief approach
EMI Moratorium
- EMI payments deferred
- Added to loan term
- No interest accrual
- Term extension only
Impact of Moratorium Periods
| Moratorium Duration | Interest Accrued (8.5% rate) | Payments Saved | Net Cost |
|---|---|---|---|
| 3 months | $2,125 (on $100K) | $2,550 | +$425 |
| 6 months | $4,250 | $5,100 | +$850 |
| 12 months | $8,500 | $10,200 | +$1,700 |
Moratorium Pros and Cons
Advantages:
- Immediate cash flow relief
- Prevents default during crises
- Time to recover financially
- May include interest waivers
Disadvantages:
- Increased total loan cost
- Extended repayment period
- Higher future EMIs
- Interest capitalization
Post-Moratorium Strategies
Managing Loans After Moratorium Ends
Immediate Actions:
- Review new payment schedule
- Assess affordability
- Consider refinancing options
- Build emergency fund
Long-term Strategies:
- Make extra payments when possible
- Consider loan consolidation
- Explore balance transfer options
- Monitor credit score impact
Prepayment Options:
- Check prepayment charges
- Calculate break-even points
- Use windfalls wisely
- Focus on high-interest loans
Refinancing Considerations:
- Compare current vs new rates
- Calculate total savings
- Consider credit score impact
- Factor in closing costs
Legal and Regulatory Aspects
Borrower Rights:
- Right to clear information
- No automatic default
- Dispute resolution options
- Regulatory complaint rights
Lender Obligations:
- Clear communication
- Interest rate disclosures
- Post-moratorium options
- Regulatory compliance
Key Takeaways for Loan Moratoriums
- Moratoriums provide short-term relief but can increase long-term loan costs
- Interest continues to accrue during most moratorium periods
- Post-moratorium payments may be higher due to extended terms
- Consider all options before opting for a moratorium
- Plan for increased payments after the moratorium ends
- Explore prepayment and refinancing options when possible
- Monitor your credit score and loan terms carefully
- Understand the difference between interest-only and full payment pauses