Set your loan and holiday details
Example input and output snapshot
| Loan balance | APR | Payment | Holiday | Strategy | Extra interest |
|---|---|---|---|---|---|
| $25,000 | 12.5% | $650 monthly | Start 2, length 3, pause | Keep payment | $320.00 |
| $18,500 | 9.9% | $410 monthly | Start 1, length 2, reduced $150 | Keep payoff date | $145.00 |
| $42,000 | 15.0% | $1,050 monthly | Start 4, length 4, pause | Custom $1,250 | $210.00 |
Formula used
- Periodic rate: r = (APR ÷ 100) ÷ periods_per_year
- Per-period interest: interest = balance × r
- Balance update: new_balance = balance + interest − payment
- Payment for a target term: payment = P×r ÷ (1 − (1+r)−n)
- Extra cost: extra_interest = new_total_interest − baseline_total_interest
How to use this calculator
- Enter your loan balance, APR, payment, and payment frequency.
- Set remaining payments to match your current payoff timeline.
- Pick when the holiday starts and how many periods it lasts.
- Choose full pause or reduced payments, then select a recovery strategy.
- Submit to see extra interest, term changes, and a schedule preview.
- Use CSV or PDF buttons to export the result section.
Why payment holidays change payoff outcomes
A payment holiday pauses or reduces installments while interest keeps accruing. The planner models this by applying a periodic rate to the outstanding balance each period. When payments drop, principal reduction slows, so the balance stays higher for longer. A higher balance produces higher interest charges in later periods, even after normal payments resume.
How the planner estimates interest during the holiday
The calculator converts your annual rate into a periodic rate based on payment frequency. For example, a 12.0% annual rate is about 1.000% per month, 0.462% per biweekly period, or 0.231% per week. Each holiday period adds interest = balance × r. Reduced payments offset part of that interest and can limit balance growth.
Comparing recovery strategies with practical numbers
Keeping the same payment typically extends the payoff timeline. Recalculating payment to keep the original payoff date raises the post‑holiday payment because fewer periods remain to amortize the higher balance. A custom payment lets you test affordability trade‑offs, such as adding $50–$200 per period to reduce extra interest. On larger balances, even one skipped month can add multiple periods.
Using the schedule preview and chart for decisions
The schedule preview shows payment, interest, principal, and balance by period, separated into before holiday, holiday, and after holiday phases. The chart highlights balance drift during the holiday and how quickly it normalizes afterward. Look for periods where interest is a large share of payment, which signals slower payoff progress. If the balance line rises, your holiday payments are below interest.
Action checklist before you request a holiday
Confirm whether your lender capitalizes unpaid interest, charges a deferral fee, or requires a catch‑up plan. Ask how the holiday affects credit reporting and the maturity date. Use the export options to share scenarios with your lender, and rerun the planner with different lengths to identify the shortest workable holiday. Keep notes on fees, new payment dates, and total added interest.
Frequently asked questions
What does the baseline scenario represent?
It assumes you keep making your regular payment with no holiday. The calculator uses the same balance, rate, and frequency to estimate payoff periods and total interest for comparison.
Does interest still accrue when payments are paused?
Yes. Each period adds interest based on the current balance and periodic rate. If you pay nothing, interest increases the balance, which can raise later interest costs.
When should I use “keep payoff date”?
Use it when you want the loan to end on the original timeline. The planner recalculates the post‑holiday payment needed to amortize the updated balance within the remaining periods.
What is a reduced‑payment holiday?
Instead of paying zero, you pay a smaller amount during the holiday. Even partial payments can offset interest and reduce balance growth, lowering the extra interest created by the pause.
How do deferral fees affect results?
If a lender charges a one‑time fee, the planner can add it to the balance after the holiday. This increases interest slightly and may extend payoff unless you raise payments.
Why might the loan take much longer after a holiday?
If your regular payment is close to interest-only, pausing payments leaves a higher balance. Resuming the same payment then reduces principal slowly, adding many extra periods.