Debt Consolidation Calculator
See whether consolidating multiple debts into one loan saves money. Compare total interest, payoff timeline, and single payment vs keeping separate debts.
Does Debt Consolidation Actually Save Money?
Debt consolidation promises simplicity — one payment instead of many. But simplicity alone doesn't save money. The real question is whether a consolidation loan at a lower rate reduces your total interest without extending your payoff timeline so far that you pay more overall.
This calculator compares two paths side by side: continuing to pay your debts separately at their current rates, versus rolling them into a single installment loan. You'll see total interest, payoff timeline, and monthly payment for each scenario.
Consolidation works best when you're consolidating high-APR credit card debt into a lower-rate personal loan and you commit to not running up new balances. If you consolidate and then charge more on your cards, you'll end up with more debt, not less.
Before consolidating, also run the Debt Avalanche vs Snowball calculator. Sometimes directing extra payments using avalanche strategy beats consolidation — especially if your highest-APR debts are small and can be eliminated quickly without a new loan.
How These Calculations Work
Transparent methodology — no black boxes. Here's exactly what happens when you use this calculator.
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Enter each current debt: balance, APR, and monthly payment.
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Enter the proposed consolidation loan APR and term.
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We simulate paying each debt independently vs one consolidated loan.
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Compare total interest, payoff dates, and single consolidated payment.
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Review whether consolidation actually reduces total borrowing cost.
Frequently Asked Questions
Consolidation saves when the new loan's APR is lower than the weighted average of your current debts AND you don't extend the term so much that total interest rises.
No — consolidation simplifies payments but doesn't optimize payoff order. Compare consolidation savings against avalanche/snowball strategies before deciding.
Credit cards, personal loans, medical bills, and other unsecured debts are common candidates. Enter each debt's balance, APR, and current payment.
Many consolidation loans charge origination fees. Use the APR Calculator to find the true rate including fees before comparing.
Opening a new loan may cause a temporary score dip, but lower utilization and on-time payments often help over time. Focus on total interest saved first.