🧩 Debt Consolidation Calculator
Compare paying your current debts as they are with one consolidation loan: monthly payment, total interest, fees, and time to payoff.
How the Debt Consolidation Calculator Works
Debt consolidation replaces several debts with one new loan and one monthly payment. Whether it saves money depends on the new rate, the term, and the fees compared with your current debts. This calculator simulates each current debt month by month at its own rate and payment, then compares the result with a single consolidation loan.
Origination fees on consolidation loans are often deducted from the loan proceeds, so the calculator sizes the new loan to cover all your balances after the fee. A longer term can lower the monthly payment while increasing the total interest, so compare both the payment and the total cost. If a current payment does not cover the interest on that debt, the calculator flags that the debt would never be paid off at that payment.
Formula
Current debts: each month, interest = balance × APR ÷ 12; balance = balance + interest − payment New loan amount = total balances ÷ (1 − fee %) New payment = loan × i ÷ (1 − (1 + i)^−n), i = new rate ÷ 12 New total cost = payment × n − total balances (interest + fee)
How to Use It
- Enter each current debt’s balance, APR, and the monthly payment you make.
- Enter the consolidation loan’s rate, term, and origination fee.
- Compare the monthly payment, total interest and fees, and payoff time.
- Try different terms to see the trade-off between payment and total cost.
Frequently Asked Questions
Does debt consolidation save money?
It can, if the new rate and fees are lower than what you pay now and the term is not much longer. The calculator compares the total interest and fees of both approaches.
Why can consolidation cost more even at a lower rate?
A longer repayment term means interest is charged for more months, and origination fees add to the cost. A lower monthly payment does not always mean a lower total cost.
What happens if my payment only covers the interest?
The balance never goes down. The calculator flags any debt whose payment is at or below the monthly interest.
Does consolidation affect my credit?
Applying for a new loan usually involves a credit check, and closing or keeping old accounts affects credit utilization differently. The effect depends on your credit profile.
Related Glossary Terms
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Formula and content last reviewed: September 2026. All calculations run in your browser — nothing you enter is sent to or stored on our servers.
Guide: understanding your result
- Consolidation replaces several debts with one loan; it saves money only if the new APR (including fees) is lower and the term is not much longer.
- Origination fees are often deducted from the loan amount, so you may need to borrow slightly more.
- Paid-off cards that are used again can leave you with more debt than before.
Worked example
$15,000 of card debt at 22% APR paid at $450 a month takes 4 yr 4 mo and about $8,394 in interest. A 36-month loan at 12% costs $498.21 a month and $2,936 in interest.
Common mistakes to avoid
- Comparing only monthly payments instead of total cost.
- Ignoring origination and prepayment fees.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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See all →✔ Reviewed by GelirLab Editöryal Ekibi · Last reviewed: September 2026 · How we check our calculators