Loan grace period calculator
A grace period delays repayment but usually does not stop interest. See how it changes your payment and cost.
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How to use it
- Enter loan amount, annual interest rate, grace period, repayment term after grace and grace interest.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Interest added: balance after grace = P × (1 + r)^g, with g grace months. Interest paid: balance stays P and the grace payment is P × r. Then payment = balance × r ÷ (1 − (1 + r)^−n).
Example
Inputs: Loan amount = 100,000, Annual interest rate = 6 %, Grace period = 6 months, Repayment term after grace = 60 months, Grace interest = Added to the balance. Result: Monthly payment after grace: 1,992.01; Balance when grace ends: 103,037.75; Interest during grace: 3,037.75.
Limits and caveats
- Assumes added interest compounds monthly during the grace period. Some lenders add it once at the end.
- Some subsidized programs waive grace interest, in which case the grace cost is zero.
Questions about this tool
Is a grace period free?
Usually not. Interest keeps running and is either added to the debt or paid monthly, depending on the contract.
Which is cheaper: adding the interest or paying it?
Paying it monthly is a little cheaper, because interest added to the balance earns interest too.
Does a grace period lengthen the loan?
Yes, repayment starts after it ends, so the full length is the grace months plus the repayment term.