Debt Consolidation Calculator
Compare your current debt vs a consolidation loan
Enter your total balance, current average interest rate, and what you can pay per month. Then compare it to a consolidation loan rate and term to see payment changes, payoff time, and interest savings.
Debt consolidation calculator for monthly payment and interest savings
Debt consolidation is usually a simple idea: replace multiple debts with one loan. The reason people search for a debt consolidation calculator is not the idea, it is the numbers. Will the new loan actually lower your monthly payment. Will it reduce your total interest. Will it help you pay off faster. And how much do fees change the deal.
This calculator compares two situations side by side. First, it estimates what happens if you keep your current debt as it is and pay a fixed monthly amount at your current average interest rate. Second, it estimates the monthly payment, total cost, and total interest for a consolidation loan at a different interest rate and a fixed term. You can optionally include an origination or setup fee and choose whether you pay it upfront or roll it into the new loan balance.
The most important outputs are practical. You will see the estimated payoff time under your current payment plan, the total interest you are likely to pay, and the total amount you will spend to become debt-free. You will also see the consolidation loan payment required for the term you choose, the total interest on that loan, and the overall cost once fees are included. The difference between these two totals shows whether consolidation is saving you money or simply rearranging the same cost into a different payment shape.
Assumptions and how to use this calculator
- Average interest rate: Your “current APR” is treated as one blended rate across your existing debts. If your debts have very different APRs, this becomes an approximation.
- Fixed monthly payment: The “current monthly payment” is treated as a steady amount you keep paying until the balance reaches zero. If your real payments vary, your results will vary too.
- Interest compounding: APR is converted into a monthly rate by dividing by 12. This matches typical amortized loan math, but real lenders may use different day count conventions.
- Fees: If you add the fee to the loan, the fee increases the balance and interest. If you pay it upfront, the fee is added to your total cost but does not earn interest.
- No extra borrowing: The comparison assumes you stop adding new debt. If you keep using paid-off credit lines, consolidation often fails regardless of the rate.
Common questions
Is debt consolidation always cheaper?
No. It is cheaper only if the effective cost of the new loan is lower than what you would pay under your current plan. A lower APR helps, but fees and a longer term can erase savings. If the new term is much longer, you can pay less per month while paying more total interest over time.
Why does the calculator ask for a “current monthly payment”?
Without a monthly payment, there is no clear payoff path. Different debts have minimum payments that change over time, and that becomes a separate model. Using a single monthly amount makes the comparison readable and lets you test realistic scenarios like “what I can actually afford each month.”
What if my current payment is too low to ever pay off the debt?
If your monthly payment is less than or equal to the monthly interest being added, the balance will not shrink. The calculator will warn you because payoff time becomes undefined. In real life, this is a red flag and usually means you need either a higher payment, a lower rate, or both.
Should I add the origination fee to the loan or pay it upfront?
Paying upfront keeps the loan balance lower and avoids paying interest on the fee, but it requires cash today. Adding the fee to the loan reduces upfront friction but increases interest cost. The difference is usually small on a small fee and short term, but it can be meaningful when fees are high or the term is long.
Does this calculator include credit score impact or lender approval?
No. This is a cost and repayment comparison tool. Approval, rate offers, and credit score effects are real considerations, but they depend on the lender and your profile. Use the calculator to set a target: the new APR and fee structure that would make consolidation worth it, then compare offers against that target.