Debt Consolidation Loan Calculator
Compare keeping your current debts against one consolidation loan: new payment, interest and net savings after the origination fee, the fee-adjusted APR, the break-even rate and a side-by-side of loan terms.
How it works
New payment = L × r ÷ (1 − (1 + r)^−n), r = loan APR ÷ 12, n = months · Loan with the fee taken from it: L = debt ÷ (1 − fee %) · Net savings = (current interest + debt) − (loan payments + cash fee) · Fee-adjusted APR = 12 × the monthly rate at which the payments repay the cash you actually received
Debt consolidation replaces several high-rate debts, usually credit cards, with one fixed-rate loan. The saving comes from the lower rate: less of each payment goes to interest, so more of it clears principal. The calculator first runs your current debts month by month at the payments you make now, then prices the new loan with the standard amortization formula. If the lender charges an origination fee, it is normally taken out of the loan, so you have to borrow a little more to pay off every debt; the fee-adjusted APR shows what the loan really costs once the fee is counted. Net savings compare everything you would pay on each path. Watch the term: a long loan can lower the monthly bill and still cost more in total, which the term table and the break-even APR make easy to see. Paying the new loan at your current payment shows the fastest way out.
Worked example
Paying $600 a month on $20,000 of debt at 22% takes 52 months and $11,192 of interest. A $20,000 consolidation loan at 11% for 4 years costs $516.91 a month and $4,811.70 of interest, so you pay $83.09 less each month and save $6,380.50 of interest. With a 5% origination fee taken from the loan, you borrow $21,052.63, the payment rises to $544.12, the fee-adjusted APR is about 13.76%, and the net savings fall to $5,074.62. Keeping your $600 payment on the fee-free loan clears it in 40 months with $3,976.88 of interest.
Sources: CFPB — What do I need to know about consolidating my credit card debt?
Frequently asked questions
When does consolidation actually save money?
When the new rate is clearly lower than the blended rate you pay now and the term isn’t much longer than your current payoff time. The break-even APR result tells you the highest loan rate that still saves money at your term and fee.
How does the origination fee change the result?
Most lenders take the fee out of the loan, so to pay off $20,000 with a 5% fee you need to borrow about $21,053. That raises the payment and the interest. The fee-adjusted APR folds the fee into one rate you can compare with your current APR, and the net savings line counts it as a cost.
Should I pick the lowest monthly payment?
Not automatically. A longer term lowers the payment but adds interest. The term table shows 2- to 7-year terms side by side; if you can afford it, keeping your current payment on the new loan clears it fastest.
Can I list my debts separately?
Yes. Choose 2–5 separate debts and enter each balance, APR and payment. The calculator works out the total, the balance-weighted average APR and the payoff of each debt at its own payment.
Does consolidation hurt my credit?
Applying triggers a hard inquiry and a new account, which can lower your score for a short time. Paying off card balances lowers your credit utilization, which usually helps over the following months, as long as you don’t run the cards back up.
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Educational estimate, not financial advice. Actual loan terms, fees and interest depend on your lender and credit profile.