Debt Consolidation Calculator

Updated Jul 10, 2026 By Jehan Wadia

Metric	Current Debts	Consolidated Loan
Monthly Payment	—	—
Payoff Time	—	—
Total Interest Paid	—	—
Total Cost (Principal + Interest + Fees)	—	—
Effective APR	—	—

Metric

Current Debts

Consolidated Loan

Monthly Payment

—

Payoff Time

—

Total Interest Paid

—

Total Cost (Principal + Interest + Fees)

—

Effective APR

—

Introduction

Debt consolidation means combining multiple debts into one single loan. Instead of paying several bills each month, you make just one payment. The goal is to get a lower interest rate, pay less each month, and get out of debt faster.

This debt consolidation calculator helps you see if consolidating your debts is a smart move. Enter your current debts — credit cards, auto loans, personal loans, or other bills — and then enter the details of a new consolidation loan. The calculator will compare your current path to the consolidated loan side by side. You will see the difference in monthly payments, total interest paid, payoff time, and overall cost.

Not every consolidation loan saves you money. A longer loan term or high fees can make things worse. This tool shows you the real numbers so you can decide with confidence. It even flags cases where your current payments don't cover the interest, meaning your balance is growing instead of shrinking.

Use this calculator before you apply for a consolidation loan. It takes just a few minutes, and the results can save you thousands of dollars.

How to Use Our Debt Consolidation Calculator

Enter your current debts and a proposed consolidation loan below. The calculator will show you if combining your debts into one loan saves you money, lowers your monthly payment, or helps you get out of debt faster.

Debt Name: Type a short label for each debt, like "Chase Visa" or "Car Loan." This helps you tell your debts apart in the results.

Remaining Balance: Enter the total amount you still owe on each debt. You can find this number on your most recent bill or statement.

APR: Enter the annual interest rate for each debt. This is the percentage your lender charges you each year. It is listed on your statement or loan agreement. If you need help understanding how APR works, try our APR calculator.

Monthly Payment: Enter the amount you pay each month on each debt. If you leave this blank, the calculator will estimate a minimum payment for you.

Loan Amount: Enter the total amount you want to borrow with your new consolidation loan. This defaults to the sum of all your current debt balances.

Interest Rate (APR): Enter the annual interest rate offered on the new consolidation loan. A lower rate than your blended average means more savings.

Loan Term: Enter how long you want to take to repay the new loan. Use the year and month fields or drag the slider to set the repayment period.

Loan Fee / Points: Enter any upfront origination fee charged by the lender. You can switch between a percentage of the loan amount or a flat dollar amount.

Click Calculate to see your results. The calculator will display your monthly payment savings, total interest savings, time saved, a side-by-side comparison table, a balance-over-time chart, and a step-by-step breakdown of the math.

What Is Debt Consolidation?

Debt consolidation means combining multiple debts into one single loan. Instead of paying several bills each month — like credit cards, car loans, and personal loans — you take out one new loan to pay them all off. After that, you only make one payment each month.

Why Do People Consolidate Debt?

People consolidate debt to save money on interest, lower their monthly payment, or pay off what they owe faster. If your current debts have high interest rates, a consolidation loan with a lower rate can cut the total amount you pay over time. It also makes managing your money simpler because you only track one due date instead of many. For a broader look at how your debts fit into your overall financial picture, consider using a budget calculator.

How a Debt Consolidation Calculator Helps

A debt consolidation calculator shows you whether combining your debts into one loan actually saves you money — or costs you more. It compares your current debts side by side with a new consolidation loan. You can see the difference in monthly payments, total interest paid, and how long it takes to become debt-free. This helps you make a smart choice before you commit to a new loan.

Key Terms to Know

APR (Annual Percentage Rate) is the yearly interest rate you pay on a loan or credit card. A lower APR means you pay less in interest.

Blended APR is the weighted average interest rate across all your debts. It gives you one number that represents your overall cost of borrowing. You can explore this concept further with our blended rate calculator.

Origination fee is an upfront charge some lenders add when they give you a new loan. It is usually a percentage of the loan amount. This fee raises the true cost of borrowing, so the calculator factors it in.

Effective APR is the real interest rate on your consolidation loan after fees are included. It is always equal to or higher than the stated APR when there is a fee.

When Consolidation Makes Sense

Debt consolidation works best when your new loan has a lower interest rate than your current debts. It also helps when your monthly payments are hard to keep up with and a longer loan term gives you breathing room. However, stretching the term too long can mean you pay more interest overall, even at a lower rate. Always check the total cost — not just the monthly payment — before you decide. If you are specifically looking to tackle credit card payoff strategies, or if you want to compare payoff methods like the debt snowball or debt avalanche, those tools can help you find the best approach for your situation. You may also want to check your debt-to-income ratio to see how your total debt load compares to your income before applying for a new loan.

Formulas used

Monthly Payment (Amortization)

M = P \cdot \frac{r(1+r)^n}{(1+r)^n - 1}, \quad r = \frac{\text{APR}}{1200}

Payoff Time (Months)

n = \frac{-\ln\!\left(1 - \dfrac{B \cdot r}{M}\right)}{\ln(1+r)}, \quad r = \frac{\text{APR}}{1200}

Remaining Balance at Month t

B(t) = B_0(1+r)^t - M \cdot \frac{(1+r)^t - 1}{r}

Blended (Weighted) APR

\text{APR}_{\text{blend}} = \frac{\sum B_i \times \text{APR}_i}{\sum B_i}

Total Interest Paid

I = M \times n - P

Effective APR (with Fees)

(P - \text{Fee}) = M \cdot \frac{1 - (1+i)^{-n}}{i}, \quad \text{APR}_{\text{eff}} = 12\,i

Net Savings from Consolidation

\text{Net Savings} = I_{\text{current}} - I_{\text{new}} - \text{Fee}

Frequently asked questions

Is debt consolidation the same as debt settlement?

No. Debt consolidation means you take out a new loan to pay off your old debts in full. You still owe the same amount, but at a new rate and term. Debt settlement means you negotiate with creditors to pay less than what you owe. Settlement can hurt your credit score. Consolidation does not reduce what you owe — it reorganizes it.

What does the blended APR number mean in the summary bar?

The blended APR is the weighted average interest rate across all the debts you entered. It weighs each debt's rate by its balance. A debt with a bigger balance has more influence on the number. This gives you one rate to compare against the consolidation loan's APR.

What happens if I leave the monthly payment field blank?

The calculator will estimate a minimum payment for you. For credit cards, it uses 2% of the balance or $25, whichever is higher. For installment loans, it estimates the payment based on a 5-year term. The field will appear in italics to show it is an estimate. You can type your own amount at any time to replace it.

What does the negative amortization warning mean?

This warning shows up when your monthly payment on a debt is less than the interest that builds up each month. That means your balance is growing, not shrinking. You are falling further behind. If you see this warning, consolidation with a fixed payment plan is usually a good idea.

What is the effective APR and why is it different from the stated APR?

The effective APR is the true yearly cost of the consolidation loan after fees are included. When a lender charges an origination fee, you receive less money than the full loan amount, but you still repay the full amount plus interest. This makes the real cost higher than the stated rate. If there is no fee, the effective APR equals the stated APR.

How does the origination fee affect my results?

The origination fee is an upfront cost added to your total expense. It raises your effective APR and reduces your net savings. The calculator includes this fee in every comparison so you see the true cost. If the fee is large, it can turn a good-looking loan into a bad deal.

Can I add more than one type of debt?

Yes. The calculator has three categories: Credit Cards, Auto Loans, and Other Installment Loans. You can add multiple debts in each category. You can enter up to 20 debts total across all categories.

Should the loan amount match my total debt balance?

Usually, yes. The calculator sets the loan amount to your total balance by default. But you can change it. You might borrow more if you want extra cash, or less if you only plan to consolidate some of your debts. Just know that borrowing more means paying more interest.

What does the balance over time chart show?

The chart shows two lines. The blue line is your combined current debt balance over time. The green line is the consolidation loan balance over time. Where a line hits zero is when that path is fully paid off. You can quickly see which option gets you debt-free sooner.

Why does the calculator say consolidation may cost me more?

This happens when the total cost of the new loan — including interest and fees — is higher than what you would pay by keeping your current debts. Common causes are a longer loan term, a high origination fee, or a consolidation rate that is not low enough to offset the extra time.

Does a lower monthly payment always mean I save money?

No. A lower monthly payment often comes from stretching the loan over more months. You pay less each month, but you pay for a longer time. The total interest can end up being much higher. Always check the total cost and total interest, not just the monthly payment.

What does the fee breakeven number in the full report mean?

It tells you how many months of lower payments it takes to recover the origination fee. For example, if the fee is $500 and you save $100 per month, the breakeven is 5 months. After that point, the monthly savings become real savings in your pocket.

Will this calculator affect my credit score?

No. This calculator runs entirely in your browser. It does not contact any lender or credit bureau. No personal information is sent anywhere. It is just a math tool to help you compare options before you apply.

How accurate are the results?

The results are accurate based on the numbers you enter. The calculator uses standard amortization formulas. Real-world results may differ slightly due to things like billing cycles, variable rates, or extra fees your lender charges. Use this as a close estimate, not a final guarantee.

What if my credit card APR is variable?

Enter your current APR as shown on your latest statement. Variable rates can change over time, so your actual costs may shift. A consolidation loan with a fixed rate locks in your interest cost, which can protect you if variable rates rise in the future.

Can I use this calculator for student loans?

You can enter student loans under the Other Installment Loans category. However, federal student loans have special benefits like income-driven repayment and forgiveness programs. Consolidating federal loans into a private loan means you lose those benefits. Make sure you understand the trade-offs before you consolidate student debt.

What is the step-by-step solution section?

This section shows you the exact math behind every number in the results. It walks through each formula, from adding up your balances to calculating the consolidation payment and net savings. It helps you verify the results and understand how the calculator arrived at each figure.

What if I only want to consolidate some of my debts?

Only enter the debts you plan to consolidate. Leave out the ones you want to keep separate. Then set the consolidation loan amount to match the total of just those debts. The calculator will compare only the debts you entered.