Debt consolidation calculator
Enter the balance, interest rate and monthly payment of each debt you want to pay off, then the rate, term and fees of the consolidation loan. The debt consolidation calculator shows your new payment, total interest before and after and whether consolidating actually saves money.
Source: CFPB – What do I need to know about consolidating my credit card debt?. Updated: .
How it is calculated
How the calculator works
For each current debt it runs the balance forward month by month with your payment to find how long you would still pay and how much interest is left. The consolidation loan pays off all balances (plus any fee and penalty); its payment follows from rate and term. Savings = interest left on current debts − (interest + fees on the new loan).
Example: a car loan and a credit card
| Balance | APR | Payment | Interest left | |
|---|---|---|---|---|
| Car loan | 8,000 | 9.9% | 250 | 1,327.12 (38 months) |
| Credit card | 3,000 | 14.9% | 150 | 470.01 (24 months) |
| New loan, 5.9%, 48 months | 11,000 | 5.9% | 257.83 |
The payment falls from 400 to about 258 a month. Stretch the term too far and the lower payment can cost more interest in total – the calculator flags that.
Before you consolidate
- Compare the APR of the new loan, including origination fees, with the rates you pay now.
- Check for prepayment penalties on the old debts; most US credit cards and many personal loans have none.
- Close the gap that created the debt: consolidating a card and running it up again doubles the problem.
- A 0% balance transfer card can beat a loan if you can repay before the promo ends – watch the transfer fee.
Frequently asked questions
Does debt consolidation save money?
It does when the new loan’s interest and fees are lower than the interest left on your current debts. A much lower rate over a similar term usually saves; a much longer term often costs more even at a lower rate.
How do you calculate a debt consolidation loan payment?
Add up the balances (plus any fee rolled in) and apply the loan formula: payment = amount × i ÷ (1 − (1 + i)−n), with i = APR ÷ 12 and n = months.
Is it better to consolidate or pay off debts one by one?
If you can get a clearly lower rate, consolidation cuts interest. Without that, paying the highest-rate debt first (avalanche) is usually cheapest.
Will consolidating hurt my credit score?
Applying causes a hard inquiry, and a new account lowers your average account age for a while. Paying on time and lower card balances usually help over time.
Can I include credit card debt?
Yes. Enter the card balance, its APR and the monthly amount you actually pay; the calculator treats it like an installment loan.
Sources and legal basis
As of:
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