About the EMI Holiday Moratorium Cost Calculator
What is the EMI Holiday Moratorium Cost Calculator?
An EMI holiday or moratorium lets you pause loan repayments for a few months. It helps with cash flow, but interest keeps accruing on the outstanding balance and is added to the loan, so you pay for the break later.
Enter the outstanding loan, rate, remaining tenure and the length of the holiday. The calculator shows the interest capitalised into the loan and the two ways to repay it: a higher EMI over the same tenure, or the same EMI for more months.
How to use the EMI Holiday Moratorium Cost Calculator
- Outstanding Loan (₹) (sample: 30,00,000)
- Interest Rate (% per year) (sample: 9)
- Remaining Tenure (months) (sample: 180)
- EMI Holiday (months) (sample: 6)
- Press Calculate Moratorium Cost (results also refresh as you type). The result card shows the Extra Interest Cost, along with Interest added to the loan, Current EMI, New EMI (same tenure) and Extra EMIs if the EMI stays the same.
Formula used
New principal = Outstanding × (1 + r ÷ 12)^(holiday months)
- New EMI (same tenure) = EMI formula on the new principal for the remaining months
- Extra EMIs (same EMI) = −ln(1 − P × i ÷ EMI) ÷ ln(1 + i) − remaining months
Extra interest cost = (new EMI − old EMI) × remaining months.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Outstanding Loan (₹) | 30,00,000 |
| Interest Rate (% per year) | 9 |
| Remaining Tenure (months) | 180 |
| EMI Holiday (months) | 6 |
| Result | Value |
|---|---|
| Extra Interest Cost | ₹2,51,135 |
| Interest added to the loan | ₹1,37,557 |
| Current EMI | ₹30,428 |
| New EMI (same tenure) | ₹31,823 |
| Extra EMIs if the EMI stays the same | 19 |
| Extra cost if the EMI stays the same | ₹5,78,132 |
Tips for using the EMI Holiday Moratorium Cost Calculator
- If you can afford it, pay at least the interest during the holiday so the balance does not grow.
- Ask your lender whether the holiday is reported to credit bureaus as a restructuring.
- Extending the tenure usually costs more interest than raising the EMI.