Comprehensive Guide
Learn more in our Loans & Mortgage Guide.
How it works
debt consolidation calculator takes your inputs and produces new monthly payment, current total payments, total interest saved, current total if kept, new loan total. Compare what you currently pay across multiple debts against a consolidation loan's single payment and total interest. You provide 2 inputs: Consolidation loan rate (percent, in percent) (default: 10.5 percent); Loan term (months, in months) (default: 48 months). The calculator returns 5 outputs: New monthly payment (the primary result); Current total payments (a secondary output); Total interest saved (a secondary output); Current total if kept (a supplementary figure); New loan total (a supplementary figure). Loans and mortgages are amortized instruments where the split between interest and principal shifts every month. Understanding the total cost of borrowing — not just the monthly payment — is the difference between a sustainable debt load and one that erodes your net worth over time. This calculator reveals the full amortization picture. The underlying formula: Current totals: each debt paid at its min until payoff | New: one loan amortized at rate over term With the default values, new monthly payment is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Formula
Current totals: each debt paid at its min until payoff | New: one loan amortized at rate over term
Tips
- The loan only helps if its rate is meaningfully below your highest cards — compare totals, not payments.
- Cut the cards from your wallet before signing; a consolidation loan plus fresh card debt is the classic trap.
- Shorter terms mean higher payments but real savings — run 36 vs 60 months.
- Balance-transfer cards with 0% offers beat consolidation loans for small, quickly-payable balances.
Frequently asked questions
Is debt consolidation a good idea?
It helps when the new rate is well below your current rates and you have stopped adding card debt — the swap mathematically reduces interest and gives one deadline. It hurts when it is used to lower the payment on the same rate while the cards get used again; the balance has not gone anywhere.
What rate can I get on a consolidation loan?
Your credit profile decides: excellent credit sees 8-13%, fair credit 15-25%. The calculator's honesty check — total interest with the loan versus total without it — applies at any rate.
How does the calculator estimate my current payoff?
Each debt is projected at its minimum payment until fully paid at its own APR, and their totals are summed. Your actual statement math varies slightly (fees, variable rates), but the comparison's shape — which is far more important — holds.
What happens to my credit score if I consolidate?
Short term: a small dip from the new loan inquiry and the higher balance ratio on the paid-off cards. Long term: consolidation usually improves the score by lowering utilization and establishing on-time payments — provided you stop revolving.