Debt Consolidation Calculator
Compare your current debts against a single consolidation loan. This debt consolidation calculator shows your new monthly payment, how much you would save each month, and the interest a lower-rate loan could save overall – all in your browser, with nothing saved.
Current debts vs a consolidation loan
How the debt consolidation calculator works
The debt consolidation calculator does two calculations. First it amortizes your current debt at its rate and payment to find the interest you would pay on your present path. Then it prices a new fixed loan - your balance at the new rate over the term you choose - using the standard loan payment formula. Comparing the two shows your monthly and total savings.
Estimates for general information only; not financial or tax advice. Consolidation offers carry fees, credit requirements, and terms that vary; confirm the real numbers before you commit.
A worked example
Say you owe $20,000 across cards averaging 22% APR and pay $600 a month. On that path you would spend about $11,192 in interest before clearing the balance. A consolidation loan at 12% over 48 months tells a different story.
The new loan’s fixed payment works out to about $527 a month - roughly $73 less than you pay now - and totals around $5,281 in interest. Consolidating would save close to $5,900 in interest while lowering the monthly payment, provided you stop adding new balances.
When consolidation makes sense
Consolidation helps most when the new rate is meaningfully lower than your current average and you can commit to the fixed payment without running the old balances back up. Watch for origination fees, which can offset some savings, and for longer terms that lower the payment but raise total interest. It also helps to have steady income and a plan to keep the freed-up cash flow aimed at the loan rather than new spending, so the lower rate actually turns into a faster payoff.
The Consumer Financial Protection Bureau lists what to check before consolidating credit card debt, and the Federal Trade Commission covers wider get-out-of-debt strategies. A lower rate only helps if the plan also changes the spending that created the balances.
Weighing your options? Pair this with the free Debt Payoff Spreadsheet and our other debt and loan calculators.
Frequently asked questions
How is the new payment calculated?
The tool uses the standard amortization formula: your balance, the new monthly rate, and the number of months produce a fixed payment that fully clears the loan by the end of the term.
Will consolidation always save money?
Not always. It saves when the new rate is lower and the term is not stretched too far. A longer term can lower the payment yet increase the total interest you pay.
Does a consolidation loan hurt my credit?
Applying triggers a hard inquiry and opens a new account, which can dip your score briefly. Paying down balances and making on-time payments usually helps over time.
What about balance transfer cards?
A 0% balance transfer can beat a loan for smaller balances you can clear during the intro period. Our balance transfer calculator compares that route.
Are fees included?
This estimate focuses on interest. Add any origination fee to your balance to see its effect, and always read the loan’s full terms.
Compare every route in our debt and loan calculators, or start with the debt payoff calculator.