Payment Holiday Cost Calculator
See what pausing mortgage payments adds to the balance, how much the monthly payment rises afterwards, and the total extra paid over the term.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →A payment holiday is not free time. Interest continues to accrue during the pause and is added to the balance, so afterwards you owe more, over a shorter remaining term, at the same rate. The monthly payment rises and the total paid over the loan goes up.
It can still be the right decision — it is far cheaper than missing payments or borrowing at consumer rates. The point is to know the price of the relief before taking it.
The calculation
During the pause the balance grows at the monthly rate: new balance = balance × (1 + i)^months paused. That larger balance is then repaid over the remaining term less the paused months, which raises the payment and the total.
Worked example
A 250,000 balance at 6.5% with 22 years left pays 1,782 a month. Pausing for three months adds about 4,085 of interest, so 254,085 is repaid over 261 months instead of 264. The payment rises to roughly 1,821 — 39 more each month — and about 4,710 extra is paid over the term, in exchange for keeping 5,347 during the pause.
Ask what it does to your credit file
An agreed payment holiday and a missed payment are very different things on a credit record, but the treatment varies by lender and country. Get written confirmation of how it will be reported before agreeing, since an unexpected marker can affect your next mortgage.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
Is a payment holiday better than missing payments?
Considerably. An agreed pause is normally reported differently from arrears and avoids default charges. If you are struggling, contact the lender before missing a payment rather than after.
Can I extend the term instead of raising the payment?
Many lenders allow it, and it keeps the monthly figure closer to where it was. It costs more interest overall because the larger balance is outstanding for longer, so treat it as a cash flow decision rather than a saving.
Will it affect getting a mortgage later?
It can. Lenders may see the pause on your credit file or in statements and ask about the circumstances. A single agreed holiday with a clear explanation is usually manageable; repeated ones are harder to explain.