Deferral Interest Carry Calculator

Deferred interest accrues and can compound. This calculator tracks balance growth.

Loan balance

Interest rate %

Monthly payment

Deferral months

Ending balance

$414,206

Capitalized interest

$14,206

Missed payments

$16,200

How the math works

Each month: new balance = old balance × (1 + monthly rate). Capitalized interest grows loan balance.

Capitalized interest on 6-12 months of deferral can add $10k-$40k to typical residential loans. Quote borrower the total loan balance post-deferral and updated monthly payment for transparency.

How to Use

Enter loan balance.
Enter interest rate.
Enter monthly deferred payment.
Enter deferral months.
Read ending balance and capitalized interest.

Frequently Asked Questions

How does it capitalize?

Deferred interest often added to principal. Next month's interest calculates on new higher balance. Compounds monthly — small amounts swell quickly.

Typical deferral?

6-12 months pandemic-style. Modifications may defer 24+ months. Be clear on capitalization rules in the agreement — changes total cost meaningfully.

Exit?

Lump sum at end. Spread repayment. Term extension. Each has different borrower and lender economics. Negotiate structure carefully.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.