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Debt Consolidation Calculator

Evaluate rolling multiple high-rate credit cards and loans into a single low-interest installment loan, and discover your monthly and lifetime savings.

New Consolidation Loan Terms
Current Debts to Consolidate
Consolidation APR: 8.9% (vs 21.9% Current) 36 Month Fixed Term
Net Lifetime Savings
$6,159
Total interest saved: $6,159
Monthly Payment Reduction
$-42/mo
New Payment: $502.02 vs $460.00 current
Total Balances Rolled $15,500
Origination Fee $310

Consolidation Financial Impact

Key Metric Current Multiple Debts Consolidation Loan Advantage
Average APR 21.87% 8.90% -12.97%
Monthly Payment $460.00 $502.02 $-42/mo saved
Total Interest Paid $8,731 $2,573 $6,159 saved
Total Amount Paid $24,231 $18,073 $6,159 net savings

How Debt Consolidation Works

Debt consolidation involves taking out a single new loan with a lower interest rate to pay off multiple higher-interest debts—most commonly high-APR credit cards, retail store charge cards, and personal loans. By doing so, you convert variable-rate revolving debt into a fixed monthly installment payment with a guaranteed payoff date.

Primary Advantages of Consolidating

Lower Interest Rate

Dropping from a 22%+ credit card APR down to an 8%–10% personal loan saves thousands in interest charges.

Single Monthly Bill

Eliminates the stress of tracking multiple billing cycles, due dates, and varying minimum amounts.

Fixed Payoff Target

Unlike open revolving cards, an installment loan has a fixed duration (e.g. exactly 36 months to debt freedom).

A Word of Caution

Consolidation restructures debt; it does not eliminate it. The single biggest danger of consolidation is running up new credit card balances on the cards that were just paid off. For consolidation to succeed, cut up the paid-off cards or freeze them until the consolidation loan is completely retired.

Understanding your calculation

Method, example and limitations

How the calculation works

A consolidation comparison models replacing existing debt payments with a new loan, including the entered rates, term and fees.

Example to check

Combining balances of 3,000 and 2,000 creates a 5,000 starting principal before any consolidation fees.

Before using the result

A lower payment may come from a longer term and higher total cost. Compare total repayment, collateral risk and fees, not just the monthly saving.

Calculation methodology · Report a result that needs review