How the Debt Consolidation Calculator works
Estimate debt consolidation payment and interest savings. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this debt consolidation calculator to compare your current debt payments with a new consolidation loan. It is helpful for estimating whether a lower rate or fixed term may reduce monthly payments, interest or repayment complexity.
Formula
Savings = estimated current payoff cost - consolidation loan payoff cost
- Total debt balance is the amount being consolidated.
- Current APR and payment estimate the existing payoff path.
- New rate and term estimate the consolidation loan payment and cost.
Worked example
For $25,000 of debt at 19.99% APR with an $800 current payment, compared with a 10.5% consolidation loan over 4 years, the calculator estimates payment and interest differences.
Common mistakes
- Consolidating debt and then running balances back up.
- Choosing a longer term that lowers payment but increases total interest.
- Ignoring origination fees, balance transfer fees or secured-loan risk.
FAQs
Does consolidation erase debt?
No. It restructures debt into a new payment arrangement; the balance still needs to be repaid.
Can consolidation lower my payment?
Yes, especially with a lower rate or longer term, but total interest should also be checked.
Should I close old accounts?
That depends on fees, credit utilization and your spending habits. Avoid new balances after consolidating.