Debt Consolidation Savings Calculator

Debt consolidation savings calculator for comparing interest, costs, and payoff time

Debt consolidation can look attractive because it replaces multiple debts with one loan, usually with a single monthly payment and a single interest rate. The problem is that “lower monthly payment” is not the same as “cheaper overall.” A consolidation loan can reduce your payment but increase your total cost if the term is longer or if fees are high. This calculator is designed to answer the practical question: will consolidating save you money and time, or will it cost more?

Use the quick mode if you only know your total balance and a rough average APR. That gets you a fast estimate. Use the detailed mode if you have separate balances and APRs (and optionally monthly payments) for up to three debts. If you do not know your current monthly payments, the calculator can estimate a typical minimum payment using a percentage of the balance. That is not perfect, but it allows you to get a usable answer without hunting for every statement.

The results compare your current setup to a new consolidation loan using standard amortization math. You will see an estimated payoff time, total interest, and total cost for each option. You will also see the difference between them, which is the “savings” (or extra cost). This makes it easier to decide whether consolidation is worth pursuing, and what numbers you should negotiate, like the APR, the term length, and the fee.

Assumptions and how to use this calculator

• If you do not enter a monthly payment, the calculator estimates a minimum payment using a default percentage (3%) of the balance, with a small floor amount applied per debt.
• Interest rates are assumed to stay constant over the life of the debt and the consolidation loan.
• Payments are assumed to be made monthly and on time, with no missed payments, penalties, or payment holidays.
• For consolidation, the origination fee can be treated as financed into the loan balance or paid upfront. The calculator does not assume additional closing costs unless you include them via the fee percentage.
• This is a cost comparison, not financial advice. It does not account for tax effects, credit score impacts, or behavioral changes that sometimes come with consolidation.

Common questions

Does a lower consolidation APR always mean I will save money?

No. A lower APR helps, but the term length and fees matter. Extending the term can increase total interest even at a lower rate. This is why the calculator compares total cost, not just the monthly payment.

What if my current monthly payments are not fixed?

Many revolving debts have changing minimum payments as the balance changes. If you enter your current total payment, the calculator assumes you keep paying that same amount each month. If you do not know payments, it estimates a typical minimum payment. For the most accurate comparison, use a payment amount you realistically plan to keep paying.

Why does the calculator warn that my payment is too low to pay off the debt?

If your monthly payment is less than or very close to the monthly interest being charged, the balance will not decrease in a normal way. In that case, payoff time becomes unrealistic or undefined. Increase the payment amount to a level that is meaningfully above the monthly interest.

Should I finance the origination fee or pay it upfront?

Financing the fee increases the loan balance and usually increases total interest. Paying it upfront avoids interest on the fee but requires cash today. The better option depends on your cash position and the size of the fee. The calculator shows the cost impact either way.

How can I make the comparison more accurate?

Use the detailed mode, enter the balances and APRs for each debt, and enter your actual monthly payments if you know them. Also use the actual consolidation loan quote (APR, term, and fee) rather than a guess. Small changes in APR or term can materially change the result.