Debt Consolidation Calculator
Free debt consolidation calculator — compare keeping multiple debts vs one consolidation loan by payment, interest, and payoff timeline.
Important: By using this page, you agree that calculator or tool results, charts, About explanations, quick tips, and formulas are for informational use only — not professional advice. You assume all risks of relying on them. See the full disclaimer below and our Terms of Service.
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How it works
Enter up to two debts with balances, APRs, and minimum payments, then consolidation loan rate and term. See monthly savings and total interest difference.
About Debt Consolidation Calculator
Informational only — not professional advice. Report an error.
You have $12,000 across two cards at 22–24% and a mailer offers one personal loan at 10%. One payment sounds great — but does the math actually save money? Debt consolidation rolls multiple balances into one loan or line, ideally at lower APR and with one monthly payment. Whether that works depends on rate, term, fees, and whether you stop accumulating new debt on cleared cards.
This calculator models your current debts paid via avalanche — highest APR first with optional extra payment — then compares total interest, monthly payment, and timeline against a fixed-rate consolidation loan for the combined balance. Enter up to two debts with balance, APR, and minimum payment, then consolidation APR, term in years, and any extra monthly amount you pay today.
Monthly payment may drop while total interest rises if the new loan stretches years longer than your disciplined payoff path. The tool flags when math alone likely favors consolidation versus when you should scrutinize fees and spending habits. Positive interest savings with similar or lower payment is a green light to shop lenders.
Negative savings with longer term means the loan is payment relief, not cost relief — decide if that tradeoff is worth it. Origination fees, balance transfer fees, and secured versus unsecured loan differences are excluded — subtract fees from projected savings manually.
Run the numbers before any hard credit pull. If you have $12,000 across two cards and wonder whether one payment at $280 beats paying $350 across accounts, this is the right first pass. Freeze or close cleared cards to avoid running balances back up — consolidation fails when spending habits do not change.
Teaser rates, variable APR, and tax implications are not modeled. Closing cards affects credit utilization — factor credit score separately. Always read the loan agreement for prepayment penalties before signing.
Quick tips
- Freeze or close cleared cards — consolidation fails when balances creep back up.
- Shorter consolidation terms save more total interest even if monthly payment rises.
- Get at least three lender APR quotes before committing.
- Subtract transfer or origination fees from interest savings — they can erase the benefit.
Formulas
consolidationPayment = amortized payment on totalDebt at consolidation APRinterestSavings = currentTotalInterest − consolidationTotalInterest
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