Debt Consolidation Calculator
Compare keeping your current debts against rolling them into one loan — including the fee and the longer term.
Your details
What you owe now
Consolidation loan
This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works
Consolidating costs you
$997
$6,030 of interest now vs. $7,027 consolidated
Includes your inputs, the full breakdown, and every row of the table.
Total debt
$18,000
Blended rate now
19.33%
New monthly payment
$417.11
−$232.89 vs. today
New payoff time
5 yrs
- Credit card balances
- $12,000
- Other loans
- $6,000
- Total to consolidate
- $18,000
- Blended interest rate
- 19.33%
- Paying today's amount
- 3 yrs 1 mo, $6,030 interest
- Origination fee (3.0%)
- $540.00
- Amount financed
- $18,540
- New payment
- $417.11
- Interest on the new loan
- $6,487
- Total cost of consolidating
- $7,027
What this means
- Consolidating does not save money at these numbers — the lower rate is outweighed by the longer term and the fee.
- A longer term almost always lowers the monthly payment while raising total interest. Compare total cost, not just the payment.
- Consolidation only works if the underlying spending stops. A large share of people who consolidate card debt carry a balance again within two years.
How the debt consolidation calculation works
Debt consolidation replaces several balances with a single loan, ideally at a lower rate. The appeal is real: one payment, one due date, a fixed end point instead of the open-ended grind of revolving credit.
The trap is the term. Lenders advertise consolidation on the monthly payment, and a lower payment is easy to produce by simply stretching the loan out. Rolling 24% card debt into a 12% loan is a genuine improvement; doing it over six years instead of three can still leave you paying more in total.
The fee belongs in the comparison too. A 3% origination fee on $18,000 is $540 before you have saved a cent, which this calculator adds to the financed amount so the payment reflects reality.
The most important variable is not on this page. Consolidation clears your credit cards, and a cleared card with a live limit is an invitation. If the spending that created the balance has not changed, consolidating converts revolving debt into instalment debt and then rebuilds the revolving debt on top of it.
Frequently asked questions
Does consolidation hurt my credit score?
Usually a small short-term dip from the hard inquiry and new account, then an improvement as card utilisation drops. Keep the paid-off cards open to preserve your available credit.
Is a lower monthly payment always good?
No. A lower payment usually means a longer term and more total interest. Compare the total cost line, not the payment.
What rate makes consolidation worth it?
As a rule of thumb, meaningfully below your blended current rate and over a term no longer than your current payoff. If either condition fails, run both scenarios above before signing.
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Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.