💰

Debt Consolidation Calculator

See whether rolling your debts into one consolidation loan lowers your monthly payment and total interest — compared head-to-head with staying put.

Total debt balance

Current average APR

Current total monthly payment

Consolidation loan APR

New loan term

Loading calculator…

How it works

New payment = P · i ÷ (1 − (1 + i)^−n), i = APR ÷ 1200, n = term in months · Current payoff by monthly amortization: balance × (1 + monthly rate) − payment, repeated · Interest = payments − principal

Consolidation replaces several balances with a single fixed-rate installment loan. The new payment comes from the standard amortization formula, so a lower APR and a fixed term give a predictable payoff date. The comparison that matters is against your current path: cards left at a high APR with a flat payment can drag on for years and pile up interest, so the honest test is total interest and payoff time, not just a smaller monthly number. Watch the term — stretching the loan can lower the payment while raising total interest.

Worked example

A $20,000 balance at 22% APR with a $600 monthly payment clears in about 52 months and roughly $11,000 of interest. Consolidated into a 36-month loan at 12% APR, the payment is $20,000 × 0.01 ÷ (1 − 1.01⁻³⁶) ≈ $664 a month, for about $3,915 of interest — $64 more each month but around $7,000 less interest and 16 months sooner.

Frequently asked questions

Does consolidation always save money?

Only if the new APR is genuinely lower and you do not stretch the term so far that total interest climbs. A longer loan can cut the monthly payment while costing more overall. Compare total interest and the payoff date, which this tool shows side by side, not just the monthly figure.

Why can my current debt "never" pay off?

If your fixed payment is at or below the monthly interest charge, the balance never falls — every payment just covers interest. High-APR credit cards near their minimum payment are the classic case, and it is exactly where consolidation helps most.

What APR should I expect on a consolidation loan?

It depends on your credit score, the lender and the term. The point is that it should be meaningfully below your current blended rate; if the best offer you can get is close to what you already pay, consolidation mostly just reshuffles the debt.

Related calculators

Debt Payoff Calculator

See when you will be debt-free, the total interest and how much extra payments save, for one debt or up to five using the avalanche or snowball method, with a payoff order and schedule.

Credit Card Payoff Calculator

See how long it takes to pay off a credit card balance and what the interest really costs.

Debt Snowball Calculator

Plan a debt snowball: pay the smallest balance first, roll each payment into the next, and see your payoff time and total interest.

Credit Card Minimum Payment Calculator

See this month’s credit card minimum payment — as a percentage of the balance or interest plus a percentage — and how long and how costly paying only the minimum is, versus a fixed payment or the 36-month payoff amount, with a payoff date, schedule and balance chart.

Loan Calculator

Work out the payment, loan amount, term or interest rate of any fixed-rate loan, with monthly, biweekly or weekly payments, fees and APR, extra payments and a full amortization schedule.

Educational estimate, not financial advice.