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Moratorium Calculator — Calculations & Slabs for FY 2026-27

Enter your loan details and moratorium period to see the additional interest accrued, the revised EMI after deferral, and the total extra cost of the pause.

1. Loan & Holiday Details

Frequently Asked Questions (FAQ)

What is a loan moratorium?

A loan moratorium is a temporary holiday period during which you do not have to pay your monthly EMIs. It is usually offered during economic crises or personal financial emergencies to help ease immediate cash flow pressures.

Is a moratorium an interest-free period?

No. A moratorium is merely a deferment of payments, not a waiver of interest. Interest continues to accrue on your outstanding loan balance during the moratorium months. This accrued interest is added to your principal, increasing your total debt.

How does a moratorium affect my monthly EMI and tenure?

When the moratorium ends, banks typically offer two choices: either increase your monthly EMI amount to keep the original loan payoff date, or keep your EMI amount the same but extend your tenure by several months (often much longer than the moratorium itself).

Should I opt for a moratorium if my bank offers it?

You should only opt for a moratorium if you are facing severe cash flow issues or job loss. Since interest compounds during the holiday, it increases your overall loan cost by thousands or lakhs of rupees, making it an expensive option.

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

💡 What Does This Calculator Do?

This calculator estimates the financial impact of taking a loan moratorium (a temporary break from EMIs). It calculates the interest accrued during the break, how it increases your outstanding principal, and the resulting increase in your monthly EMI or total repayment costs.

📋 How to Use It

  1. 1
    Loan Amount (₹): Enter the outstanding loan principal before the moratorium.
  2. 2
    Interest Rate (%): Enter the annual interest rate on the loan.
  3. 3
    Original Tenure (Years): Enter the remaining loan tenure in years.
  4. 4
    Moratorium Period (Months): Enter the number of months of the payment holiday (usually 1 to 6 months).

🧬 The Logic Explained Simply

  • The Concept: A moratorium is not an interest waiver; it is merely a payment deferment. The bank continues to charge interest on your outstanding balance during the holiday. This accrued interest is added to your loan principal, compounding your debt. When payments resume, you will face either a higher EMI or an extended tenure.
  • The Formula:
  • Monthly Interest Rate (r) = Rate / 12 / 100
  • Moratorium Accrued Interest = Loan Amount × r × Moratorium Months
  • New Loan Principal = Loan Amount + Moratorium Accrued Interest
  • Original EMI = [Loan Amount × r × (1 + r)^n] / [(1 + r)^n - 1] (where n = Tenure in Months)
  • New Resumed EMI = [New Principal × r × (1 + r)^n] / [(1 + r)^n - 1] (retaining original tenure)
  • Extra Cost = (New EMI × n) - (Original EMI × n)

💡 Real-World Calculation Breakdown

For example, you have a loan outstanding of ₹20,00,000 at an 8.5% interest rate with 15 years remaining, and you opt for a 3-month moratorium:

  • Original EMI = ₹19,695
  • Monthly interest rate (r) = 8.5 / 12 / 100 = 0.007083
  • Interest accrued during 3 months = ₹20,00,000 × 0.007083 × 3 = ₹42,500
  • New Outstanding Principal = ₹20,42,500
  • New EMI after moratorium = [20,42,500 × 0.007083 × (1.007083)^180] / [(1.007083)^180 - 1] = ₹20,113
  • Increase in EMI = ₹20,113 - ₹19,695 = ₹418 / month
  • Total Extra Cost over 15 years = ₹418 × 180 months = ₹75,240

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