Loans

Debt Consolidation Calculator

Consolidating rolls several debts into one loan, ideally at a lower rate. Enter your total balance, your current rate and payment, and the new loan's terms to see the new monthly payment, the total interest, and how much consolidating would actually save.

Tested against worked examplesHow we verify

Total debt to consolidate

Current average APR

The blended rate across your current debts (credit cards often 20%+).

Current total monthly payment

New loan APR

New loan term

New monthly payment

$996

One fixed payment replacing your current debts.

Interest on the new loan: $5,871
Interest finishing as-is: $16,788
Interest saved by consolidating: $10,917

Compare scenariosTry three values of one input

Vary

Debt Consolidation Calculator results for three values of Total debt to consolidate
Total debt to consolidate
New monthly payment	$897	$996+$100	$1,096+$199
Interest on the new loan	$5,284	$5,871+$587	$6,459+$1,174
Interest finishing as-is	$12,558	$16,788+$4,230	$22,257+$9,700
Interest saved by consolidating	$7,273	$10,917+$3,643	$15,799+$8,526

Every other input stays at the value you set above — currently $30,000 for total debt to consolidate. Differences are measured against the first column.

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Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.

How this calculator works

The new loan's payment fully amortizes your balance over its term at its APR; new interest = payments × months − balance. Current interest assumes you hold today's payment until the debt is cleared (interest = payment × months to payoff − balance). Interest saved is the difference.

Estimates only, and they ignore balance-transfer or origination fees, which can offset savings — add those into your comparison. If your current payment doesn't cover the interest, the debt never pays off at that rate, and no honest comparison is possible.

What this assumes

The new loan replaces the balances you enter, at the rate and term you enter, with no origination fee unless included.
It assumes the cleared cards stay unused. If they refill, the total debt rises rather than falls.
Secured consolidation is not distinguished here: moving debt onto a home converts a credit problem into a housing risk.

What changes this number

The weighted average of your current rates: Consolidation only saves if the new rate beats it — not if it beats your worst card.
New term length: A longer term lowers the payment and can raise total interest, which is how consolidation often costs more while feeling cheaper.
Behaviour after: Not modelled, and the usual reason consolidation fails.

A worked example

Take the $30k at 22% → 12% for 3 yrs scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Total debt to consolidate: $30,000
Current average APR: 22%
Current total monthly payment: $900
New loan APR: 12%
New loan term: 36 months

What it returns

New monthly payment: $996
Interest on the new loan: $5,871
Interest finishing as-is: $16,788
Interest saved by consolidating: $10,917

Try an example

$30k at 22% → 12% for 3 yrs Longer term, lower payment Small rate gap

Frequently asked questions

Does consolidating debt save money?

It saves money when the new loan's rate is lower and the term isn't so long that the extra months cancel the savings. Moving high-interest credit card balances (often 20%+) to a personal loan around 10–12% typically cuts both the rate and total interest. This calculator shows your specific comparison.

Does debt consolidation hurt your credit?

Usually only briefly. Applying triggers a small, temporary dip from the hard inquiry, and a new account lowers your average account age. But paying off credit cards drops your utilization — a big factor — which often raises your score within a few months, provided you don't run the cards back up.

What's the catch with a lower monthly payment?

A lower payment often comes from a longer term, which can mean more total interest even at a lower rate. Always compare total interest, not just the monthly payment. The best consolidation lowers the rate and keeps the term short enough to actually save — this tool flags when it doesn't.

What are the ways to consolidate debt?

Common options are a personal (debt consolidation) loan, a 0% balance-transfer credit card, or a home equity loan/HELOC. Balance transfers can be cheapest if you clear the balance in the promo window; home equity offers low rates but secures the debt against your house. Match the tool to your payoff plan.

This calculator helps answer

How do I get out of debt?

Order your debts, find the extra payment that actually moves the date, and price the shortcuts. The method matters far less than most advice suggests.