Debt Consolidation Calculator
Compare your current debts against a consolidation loan offer to see which path actually costs less in interest, time, and monthly payment.
Your Current Debts
Consolidation Loan Offer
How the Debt Consolidation Calculator works
Debt consolidation replaces several balances — usually credit cards with different rates and due dates — with a single new loan. Whether that's a good deal depends entirely on the math, not the marketing. This calculator adds up your current debts and simulates paying them off with minimum payments only, then compares that against a new consolidation loan at the interest rate, term, and fee you enter, so you can see the real dollar difference before you sign anything.
When consolidation helps
Consolidation tends to pay off when the new APR is meaningfully lower than the blended average rate of your current debts, and the new term isn't so much longer that the extra months of interest cancel out the rate savings. It also simplifies your finances into a single fixed monthly payment, which can reduce missed payments.
When consolidation doesn't help
If the new loan stretches your payoff out for years longer than your current pace, you can end up paying more total interest even at a lower rate — the calculator will show this clearly as a negative "savings" figure. Consolidation also doesn't fix overspending: if you keep balances open and rack up new charges, you can end up with both the new loan and fresh credit card debt.
New monthly payment = amortized payment at New APR over Loan term
Savings = Current total interest − New loan total interest
Tips before you consolidate
- Compare the APR, not just the payment — a lower payment with a longer term can cost more overall.
- Read the fee schedule: origination, prepayment, and late fees all affect the real cost.
- Close or freeze paid-off cards only if it won't hurt your credit utilization ratio too much.
- Check a balance transfer card too — a 0% intro offer can beat a consolidation loan for smaller balances.
- Run a personal loan payoff calculator on any specific offer to see its full amortization schedule.
Frequently Asked Questions
It can, but only if the new loan's interest rate is meaningfully lower than the weighted average rate of your current debts and you don't extend the payoff term so far that the extra time offsets the rate savings. This calculator compares both paths side by side using your real numbers.
Many consolidation loans charge an origination fee, typically 1% to 8% of the loan amount, deducted or added to the balance. This calculator adds the fee to your loan principal so the total interest and payment reflect the true cost of borrowing.
A hard inquiry and a new account can cause a small, temporary dip, but consolidating can help your score over time by lowering your credit utilization on revolving accounts and by keeping payments consistent and on time.
It depends on your balance size and discipline. A 0% intro APR balance transfer card can beat a consolidation loan if you can pay off the balance within the promotional period; otherwise a fixed-rate, fixed-term consolidation loan is usually more predictable. Try the Balance Transfer Calculator to compare.