Debt Consolidation Calculator
Adjust the inputs below. Results update as you type.
How it works
Consolidation combines multiple balances into a single loan, ideally at a lower average rate. Enter each current debt with its balance, rate, and minimum payment. Compare total monthly outflow and lifetime interest against the proposed consolidation loan. Lower payments via longer terms can increase total interest—always compare total cost, not just monthly payment.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
Consolidation replaces several debts with one loan. Compare the blended cost: new monthly payment and total interest at the new rate and term versus the sum of the existing debts.
Worked example
Rolling $15,000 of credit card debt at 22% into a 5-year personal loan at 11% can cut the monthly cost and save thousands in interest — provided you stop using the old cards.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
Frequently asked questions
Does consolidation save money?+
It can, if the new rate is meaningfully lower and you do not run the old balances back up. A longer term can lower payments but raise total interest.
What are the options?+
Personal loans, balance-transfer cards, and home equity loans are common. Each has different rates, fees, and risks — secured loans put assets on the line.
Will it hurt my credit?+
A new loan may dip your score briefly, but reducing high credit card utilization and making steady payments usually helps over time.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.
Guided next steps
Want the full workflow? Use this calculator inside a step-by-step guide.