Debt Consolidation Calculator
Use this debt consolidation calculator to compare your current debts with one lower-rate loan: the new monthly payment, total savings and total cost.
What it does
The Debt Consolidation Calculator shows whether rolling several balances into one lower-rate loan would cut your monthly payment and the total you repay. It compares the cost of clearing your current debts at today's blended rate against a single new fixed-term loan.
Data sources & parameters
This calculator uses standard financial formulas and runs entirely in your browser. It needs no external rate data — your result is computed only from the values you enter above.
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
New payment = (Debt + fee) × j ÷ (1 − (1 + j)^(−n)), where j is the monthly rate and n the number of months; savings = current total repaid − new total repaid
How it works
It estimates how many months your current debts would take to clear at your present payment and APR, then prices a new loan for the same balance plus any fee at the new APR and term. The difference between the two total costs is your projected saving.
Where it is used
- Deciding whether a consolidation loan is worth taking
- Comparing a lower rate over a longer term against your current plan
- Seeing how an up-front fee changes the real saving
Worked example
Someone owes $20,000.00 at a blended 22% APR and pays $600.00 a month. Consolidating into a 4-year loan at 11% with a $300.00 fee drops the payment to … and cuts total repayment by ….
What the debt consolidation calculator does
The debt consolidation calculator shows whether rolling several balances into one lower-rate loan would save you money. It compares the cost of clearing your current debts at today's blended rate and payment with a single new fixed-term loan, and reports the new monthly payment, the total you would repay, and the difference between the two paths.
Consolidation is often sold on one simple payment and a lower rate. Both can be real benefits, but the test that settles it is the total repaid over the life of each option.
How debt consolidation works
Debt consolidation replaces several debts, often credit cards and personal loans at different rates, with a single new loan. You borrow enough to clear the existing balances, then repay that one loan over a fixed term at a fixed rate, with one predictable payment in place of many due dates.
Your current debts have an implied payoff period based on how much you pay each month and the interest you are charged. The new loan has its own payment, set by its rate and term. Whether you come out ahead depends on how those two total costs compare, and the term you choose has a large effect.
Reading your results
The new monthly payment is what you would pay on the consolidation loan each month. Total savings is the difference between what you would repay on your current path and on the new loan, so a positive number means consolidating is cheaper overall. The new total cost is every payment on the new loan added together, including any fee you financed.
A lower payment that comes from stretching the balance over many more years can raise the total interest even as the monthly figure falls, so read the total cost alongside the payment.
When consolidation makes sense
Consolidation helps most when you move high-rate revolving debt, such as credit cards, onto a fixed-rate loan at a clearly lower rate and keep the term similar to or shorter than your current payoff timeline. You cut the rate without paying the lender interest for extra years.
It works against you when the new rate is only slightly lower but the term is much longer, or when a large fee eats the benefit. It also only helps if you stop adding new debt to the cards you just cleared.
Run the numbers with your real balances and the rate you have actually been offered, not an advertised best case. Try a shorter term as well as the lender's default: a slightly higher payment may save far more overall. If the total cost falls and the payment fits your budget, consolidation is working. If only the payment falls and the total rises, you are paying more, more slowly.
Fees, rates, and the fine print
Enter the arrangement or balance-transfer fee if there is one, because it is added to the amount borrowed and changes the saving. Check whether the new rate is fixed or variable, whether there are early-repayment penalties, and whether any promotional rate reverts to a higher one later. The calculator assumes fixed payments and no further borrowing during the term, so both options are compared on the same basis.
Your actual saving depends on the exact rates, fees, and payment behaviour you commit to, so confirm the offer terms with the lender before signing.
About This Debt Consolidation Calculator
Use this debt consolidation calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Frequently asked questions
How does the debt consolidation calculator work?
Will consolidating my debt always save money?
Does a consolidation fee change the result?
What APR should I enter for my current debts?
Is my data kept private?
Does a lower monthly payment mean it is a good deal?
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