Debt Consolidation Calculator
Estimate whether consolidating your debts could lower your monthly payment, total interest, and overall repayment cost.
Overview
A debt consolidation calculator helps you compare your current debts with a new consolidation loan. Enter your total balance, average current interest rate, current payoff period, proposed new loan rate, loan term, and any fee to estimate whether consolidation may reduce your monthly payment or change your total repayment cost.
How it works
The calculator estimates your current monthly payment using your total debt balance, average annual interest rate, and current payoff period. It then estimates the payment for a new consolidation loan using the new rate, new term, and any fee added to the loan cost. By comparing the two repayment schedules, it shows whether the new loan may lower your monthly payment and whether it may cost more or less overall.
How to use this calculator
- 1Enter the total balance of the debts you want to consolidate.
- 2Add the average annual interest rate for those existing debts.
- 3Enter the number of months you expect to take to repay the current debts.
- 4Enter the interest rate and term for the proposed consolidation loan.
- 5Add any upfront loan fee, then review the estimated payment and total cost difference.
Example Calculation
Total current debt balance
$15,000
Current average interest rate
18%
Current payoff period
48
Consolidation loan interest rate
10%
Consolidation loan term
48
Loan fee
$300
Consolidation monthly payment
$388.05
For example, consolidating $15,000 of debt at 18% over 48 months into a new 48-month loan at 10% with a $300 fee could reduce the monthly payment and may also lower the total amount repaid, depending on the exact loan terms.
Frequently asked questions
What does this debt consolidation calculator estimate?
It estimates your current combined monthly debt repayment, the payment for a proposed consolidation loan, and the difference in total repayment cost.
Can debt consolidation lower my monthly payment?
Yes, it can lower your monthly payment if you get a lower interest rate, a longer term, or both. However, a longer term may increase the total amount repaid.
Does this calculator include loan fees?
Yes. Any fee you enter is treated as part of the consolidation cost so you can see its effect on the new loan comparison.
What interest rate should I use for my current debts?
Use a weighted average annual interest rate if your debts have different rates. This gives a more realistic estimate than using a simple average.
Will consolidation always save money?
No. Consolidation can simplify payments and sometimes reduce interest, but fees and longer repayment periods can make the total cost higher.
Can I use this for credit cards and personal loans together?
Yes. You can enter the combined balance and an average interest rate for multiple debts you plan to consolidate into one loan.
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Assumptions and warnings
Assumptions
- Results are estimates based on fixed interest rates and fixed monthly payments.
- The current debt is simplified into one combined balance with one average annual interest rate.
- The consolidation loan is assumed to fully pay off the selected debts.
- Any loan fee entered is treated as part of the cost of consolidation.
- This calculator does not include late fees, penalty charges, balance transfer offers, or changing rates.
Warnings
- This calculator provides an estimate only and is not financial advice.
- A lower monthly payment can still mean paying more overall if the repayment term is longer.
- Check lender fees, eligibility, and terms before making a borrowing decision.