Debt Consolidation Impact Calculator

Debt consolidation calculator for monthly payment, interest, fees, and payoff time

Debt consolidation can make your finances easier to manage by replacing multiple payments with one loan. The part people usually miss is the trade-off. A lower interest rate can reduce the total interest you pay, but a longer term can increase it. Fees can wipe out your monthly savings for months. And if you keep spending on credit cards after you consolidate, your total debt can get worse even if the consolidation loan looks cheaper.

This calculator focuses on what you can estimate reliably with a small set of inputs: your current total balance, an average interest rate, and the consolidation loan terms. It shows the new monthly payment for a fixed term loan, the expected total interest, the effect of rolling fees into the loan versus paying them upfront, and how extra monthly payments change payoff time. If you enter your current total monthly payment, it also estimates your current payoff timeline and compares it to the consolidation scenario so you can see whether you are actually saving time and money.

Use this as a decision filter, not a promise. Consolidation is usually helpful when your new APR is meaningfully lower, you do not extend the term too far, and the fees are reasonable. It is often unhelpful when the term stretches the debt out, the fees are high, or the underlying spending behaviour stays the same. The output is designed to be scannable so you can compare scenarios fast, then refine inputs if you want a more accurate picture.

Assumptions and how to use this calculator

• The “current average APR” is treated as a single blended rate for your existing debts. Real debts vary by account.
• If you enter a current monthly payment, the payoff estimate assumes a simple amortising payoff at the blended APR.
• Consolidation loan payments are calculated as a standard fixed-rate amortising loan over the chosen term.
• Fees can be either rolled into the new loan (increasing the principal) or paid upfront (increasing total cost now).
• This tool does not model missed payments, penalty interest, changing rates, balance transfer promo periods, or taxes.

Common questions

What is the difference between “roll fees into the loan” and “pay fees upfront”?

Rolling fees into the loan increases the amount you borrow, which increases both your payment and the interest you pay over time. Paying fees upfront keeps the loan amount lower, but you need cash today. If you have the cash, paying upfront often reduces total cost because you are not paying interest on fees. If you do not have the cash, rolling fees may be realistic, but it is not “free”.

Why does a lower interest rate sometimes still cost more overall?

Term length. Interest is paid over time. A lower APR helps, but extending repayment from, for example, 3 years to 7 years can increase total interest even at a lower rate. The calculator shows total interest over the term so you can see whether the new loan is actually cheaper, not just smaller per month.

What if I do not know my current total monthly payment?

Leave it blank. You will still get a full consolidation loan estimate (payment, interest, fees, total cost). The current payoff comparison requires a payment amount because it is the payment that determines payoff speed. If you want a rough estimate, add up the minimum payments from your statements, or use what you usually pay each month across debts.

How does an extra monthly payment affect consolidation results?

Extra payments reduce principal faster, which reduces interest and shortens payoff time. Even a small extra amount can make a large difference over years. The calculator shows an “accelerated” scenario if you enter an extra payment. This can be useful if you plan to consolidate for simplicity but still want to eliminate debt quickly.

When should I not use this calculator as my final answer?

If your debts have very different interest rates, if some are promotional (0% for a period), if rates are variable, or if you plan to keep using revolving credit after consolidation, you need a more detailed plan. This tool is still useful to sanity-check whether the new loan terms are even in the right ballpark before you spend time applying.