Debt Consolidation Calculator
Wondering whether one consolidation loan beats your current debts? Enter what you owe and pay now, and the consolidation loan's rate and term, and this tool compares the total cost each way — including any fee — so you can see the real monthly payment change and net saving. It works in any currency.
When consolidation actually saves money
Rolling several debts into one loan is appealing for the single, predictable payment — but it only saves money if the new loan's rate and term produce a lower total cost than your current debts. A lower monthly payment can hide a higher lifetime cost if it comes from stretching the term. The calculator compares the total money you'd pay each way, including any origination fee, so the real question — cheaper or just easier? — is answered directly.
Worked example
Say you owe $20,000 at an average 20% APR and pay $600 a month — that clears in about 50 months and costs roughly $9,400 in interest (about $29,400 in total). Consolidate into a 4-year loan at 11% and the payment drops to about $517, with only about $4,800 interest (about $24,800 total) — saving roughly $4,600 and lowering the monthly payment. Enter your own numbers above.
Before you consolidate
- Compare total cost, not just the payment. A longer term can lower the monthly figure while raising lifetime interest.
- Factor in the fee. An origination fee is added to the loan; the calculator includes it in the total.
- Don't reuse the cleared debts. The biggest risk is running the old cards back up and ending with more debt than you started.
Methodology & assumptions
The current-debts scenario simulates paying your total balance at the average APR with your current monthly payment. The consolidation scenario amortises the balance (plus any fee) at the new rate over the chosen term. The comparison is total money paid each way. It treats multiple debts as one balance at a blended rate and assumes fixed payments and no new borrowing. It is a planning estimate, not a loan offer. See our methodology and editorial policy.
Frequently Asked Questions
Will consolidation always lower my payment?
Often, but not always — it depends on the new rate and term. The calculator shows the exact payment change.
Is a lower payment always good?
Not if it comes from a longer term that raises total interest. Compare the total-cost figures, not just the monthly ones.
Consolidation loan or balance transfer?
A transfer suits card debt you can clear during a 0% intro period; a loan suits larger debts repaid over years. Check both.
Mostly credit-card debt?
A 0%-intro balance transfer might beat a loan — check whether the fee is worth it.
Open the balance transfer calculator →Related calculators
Sources
Uses standard reducing-balance and amortization math to compare total cost. Figures are estimates for planning, not a loan offer — confirm rate, term and fees with a lender. See our methodology and editorial policy.