Debt Consolidation Calculator
Compare your current combined debt payments against a single consolidation loan to see monthly savings and total interest saved.
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How to use this calculator
P_total = total debt consolidated, r = monthly consolidation rate, n = consolidation term in months.
- 1
Enter the balance and interest rate for each of your existing debts (up to three).
- 2
Enter the interest rate and term offered by the consolidation loan.
- 3
Compare the new monthly payment against your combined current payments.
- 4
Review the estimated total interest saved to decide if consolidation makes sense.
Frequently asked questions
What formula does the new loan side use?
This tool uses the standard fixed-payment loan formula, payment = B × r ÷ (1 − (1 + r)^−n), where B is the three balances added together, r is the loan rate ÷ 12 and n is the term in months. New total interest is payment × n − B. A loan rate of 0% simply divides the balance by the number of months.
How is the “current monthly” figure estimated?
The tool does not know your real minimums, so it assumes each debt is paid at one month of interest plus 1% of the starting balance, and keeps that payment fixed until the debt is gone. The 1% is a figure built into this tool. Your statements may require more or less, so treat the current-side numbers as an estimate and compare them with your actual payments.
Why can “Interest Saved” show a minus sign?
Because it is allowed to go negative. A longer new loan can cost more interest than the estimated current payoff even when the monthly payment falls. With $10,000 at 9% and $5,000 at 7% moved into an 11% loan over 120 months, the payment falls from $254.17 to $206.63 but interest rises by $5,433.65, shown as a minus.
What costs are left out of the comparison?
Origination or balance-transfer fees, closing costs, late fees, any rate change after the start, early-payoff penalties, and the effect on a credit score. Real lender rates, fees and approval criteria change, and the lender’s own offer governs. Enter the rate you were actually quoted, and add any upfront fee to the balance if it is financed.
Does the tool assume I pay extra on the current debts?
No. The current side uses only the estimated fixed payment per debt, and a debt that is cleared does not pass its payment to another one. For a plan that rolls payments between debts, the Debt Payoff Calculator on this site models that. This tool compares one outcome against another, not two payoff strategies.
How many debts can I enter, and what if a balance is 0?
Up to three. Any debt with a balance of 0 is ignored, and if all three are 0 the tool asks for at least one debt. A rate of 0% on a debt is used as zero. A cleared box counts as 0, so a cleared rate is a 0% debt and a cleared balance drops that debt, and negative numbers are treated as 0.
What happens with a loan term of 0?
The new payment shows as n/a because the formula would divide by zero, and the tool still lists the estimated current payment and total balance. The term is rounded to whole months, and the payoff of the current debts is capped at 100 years in the simulation.
Does this tell me whether I would qualify or should consolidate?
No. It shows arithmetic for the numbers you enter, such as monthly payment, interest and payoff length on each side. Whether a lender offers that rate, and whether it suits your circumstances, is up to the lender and, if you want advice, a qualified adviser.
Consolidation loan versus your current debts
What the tool actually compares
It adds up to three balances, prices one fixed-rate loan for the total, and compares that with each debt paid at its own estimated payment. With the starting values ($8,000 at 22%, $4,000 at 18% and $2,000 at 15%, against a 10% loan over 48 months) the new payment is $355.08 against an estimated $371.67 today. The new loan costs $3,043.66 in interest; the current debts would cost $8,086.39 over 66 months, so the tool reports $5,042.73 saved.
How the loan term moves the answer
The next table uses one $6,000 debt at 21% and a 12% loan, changing only the term. The estimated current payment is $165.00 a month, finishing in 59 months with $3,621.47 of interest. A shorter loan raises the payment above that figure, while a longer one lowers it but gives back part of the interest advantage, so the two outputs pull in opposite directions.
| Loan term | New payment | Monthly saving (minus = higher payment) | New total interest | Interest saved |
|---|---|---|---|---|
| 36 months | $199.29 | −$34.29 | $1,174.29 | $2,447.18 |
| 60 months | $133.47 | $31.53 | $2,008.00 | $1,613.47 |
| 84 months | $105.92 | $59.08 | $2,896.98 | $724.50 |
When consolidating costs more interest
Low-rate debts can make the answer flip. Moving $10,000 at 9% and $5,000 at 7% into an 11% loan over 120 months lowers the payment by $47.54, from $254.17 to $206.63, yet the loan’s interest is $9,795.00 against $4,361.35 for the current debts. The tool shows interest saved as −$5,433.65 rather than hiding it. The rate on the new loan is higher here, which is the main reason.
A smaller pair of debts
For $3,000 at 24.9% and $1,500 at 19% with a 12% loan over 36 months, the new payment is $149.46 against an estimated $131.00, so the monthly figure rises by $18.46. The new interest is $880.72 versus $2,886.97 over 61 months, a $2,006.25 difference. A higher payment can therefore come with a large interest gap, because the loan ends sooner.
Assumptions worth knowing
The current side assumes a fixed payment of one month’s interest plus 1% of each starting balance, a figure built into this tool, and no new borrowing. No fees, taxes or credit-score effects are included. Actual rates, fees and eligibility change over time and differ by lender, so the lender’s quote governs the real numbers.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →