Both look like free financing. With a 0% intro APR, a leftover balance simply starts charging interest. With deferred interest, you can owe all the interest back to the purchase date.
By the CalcLedger editorial team · Updated September 2026 · 4 min read · Examples use illustrative rates · How we calculate
Store cards and checkout financing often advertise "no interest if paid in full in 12 months." It sounds the same as a 0% intro APR card, but the fine print works very differently. With holiday shopping season ahead, it is worth knowing which one you are signing up for.
According to the CFPB, with a deferred interest offer "you won't have to pay any interest on the purchase if you pay it off within the specified time frame." But if you don't pay it all off in time, or if you fall more than 60 days behind, you can be charged the interest that built up from the date of purchase. That is why it is called deferred: the interest is postponed, not waived.
Take a $2,400 purchase over a 12-month promotion, with a 29.99% standard APR, and payments of $190 a month. After 12 payments, $120 is still owed.
| Deferred interest offer | 0% intro APR card | |
|---|---|---|
| Interest during the 12 months | Accrues in the background | None |
| Balance left after 12 payments of $190 | $120 | $120 |
| What happens at the end | About $406 of back interest is added | Interest starts on $120 only |
| Cost in the first month after | $406 + about $3 | About $3 |
Cost of leaving $120 unpaid after 12 months
$2,400 purchase, 29.99% APR, $190 a month
Paying only a typical minimum is worse. If the minimum were 3% of the balance (at least $35), about $1,665 would still be owed after 12 months, and the deferred interest that would be charged is about $612.
If you have both a promo balance and other purchases on the card, how your payment is split matters. The CFPB explains that during the last two billing cycles before the promotion ends, if you pay more than the minimum, your card issuer must apply that extra money to the deferred interest balance. Before that, you can ask the issuer to apply extra payments to it, but it does not have to.
For a 0% card used to move existing debt, the balance transfer calculator shows whether the fee and promo length work in your favor. For a balance already charging interest, the credit card payoff calculator compares the minimum with a fixed payment, and how credit card interest is calculated explains the daily math.
Is deferred interest the same as 0% APR?
No. With a 0% intro APR, no interest is charged during the promotion. With deferred interest, interest accrues and is charged in full if you don't pay the balance off by the end date.
How much should I pay each month on a deferred interest purchase?
Divide the purchase price by the number of months in the promotion and pay at least that. For $2,400 over 12 months, that is $200 a month.
What happens if I pay almost all of it?
With deferred interest, even a small leftover balance can trigger interest from the purchase date on the full amount. In the example here, $120 left over leads to about $406 of interest.
Can I avoid deferred interest completely?
Yes: pay the full balance before the promotion ends and never fall more than 60 days behind. If you are unsure you can, a 0% intro APR card or saving up first is safer.
Example figures assume interest charged monthly on the declining balance; your card agreement sets the exact method.
Rules, limits and program details are checked against these official sources. Example numbers are calculated by CalcLedger with the formulas on our how we calculate page. Read our editorial policy.