Debt Consolidation Calculator

How to Use the Calculator

This calculator helps you understand the financial impact of consolidating multiple debts into one new loan. Here's what to enter:

• Current Debts: List balances, interest rates, and current monthly payments for each debt (credit cards, loans, etc.).
• New Loan APR: The interest rate you expect for the consolidation loan.
• Loan Term: The repayment period for the new loan.
• Consolidation Fees (optional): Add any balance transfer or origination fees.

Click “Calculate Consolidation” to compare:

• Current vs consolidated monthly payments
• Total interest paid
• Time to payoff
• Potential savings or costs

Understanding the Results

Using average data in the U.S.:

• Current Debt: $12,000 across 3 credit cards
• Avg. APR: 19.9%
• New Loan Rate: 10.5% for a 5-year personal loan

Before Consolidation:

• Monthly Payment: $360.00
• Total Interest: $4,729.00
• Payoff Time: 4 years

After Consolidation:

• New Monthly Payment: $257.05
• Total Interest: $3,422.84
• Payoff Time: 5 years

Net Result:

• Save $1,306.16 in interest
• Extend payoff time by 1 year
• Lower monthly payments by over $100

When Is Debt Consolidation a Good Idea?

• You have high-interest credit cards
• You qualify for a lower APR
• You want to simplify multiple debts into one payment
• You can manage a longer repayment term responsibly

Caution: Don’t Just Shift Debt

• Avoid running up new balances after consolidating
• Check for loan fees or prepayment penalties
• Commit to a payoff plan and use our calculator to monitor progress

Conclusion

Consolidating debt can reduce your interest costs and streamline your finances—but only if you commit to the new plan. Use our Debt Consolidation Calculator to estimate your savings and see if a consolidation loan is right for you.

FAQ:
Q: Will consolidating hurt my credit score?
A: It may cause a small dip temporarily due to a hard credit inquiry, but it can help long-term if managed well.
Q: Can I include student loans?
A: Federal student loans can be consolidated, but that’s a separate process. Private loans may be included.
Q: What’s the best type of loan to consolidate debt?
A: Personal loans with low APR and no fees are popular. Balance transfer cards can also help if paid within the intro period.