Debt Consolidation Calculator
Compare paying your debts as they are with one consolidation loan: the new monthly payment against what you pay now, the total interest and fees both ways, when you are debt-free, and whether it saves money.
Result…
How it's calculated
Now: each debt, each month: balance = balance × (1 + rate ÷ 12) − its payment New loan L = total debts (+ fees if added); with a % fee added, L = debts ÷ (1 − fee %) New payment = L × i ÷ (1 − (1 + i)^−n), i = rate ÷ 12 Saved = (debts + interest now) − (new payments × n + fees paid up front)
Compares two ways to clear the same debts. The first keeps paying each debt as you do now, month by month, until it is gone. The second pays them all off with one new loan at a fixed rate and term, with its fees either added to the loan or paid up front. It shows the new monthly payment against what you pay now, the total interest and fees each way, when you are debt-free, and how much consolidating saves or costs in total.
Your numbers, step by step
About the Debt Consolidation calculator
This debt consolidation calculator compares two ways of clearing the same debts. In the first you keep paying each debt as you do now, month by month, until it is gone. In the second one new loan at a fixed rate and term pays them all off, with its fees either added to the loan or paid up front. List each debt with its balance, yearly rate and the payment you make now, then enter the offer. You get the new monthly payment beside what you pay today, the total interest both ways, the fees, how long each route takes to be debt-free, and whether consolidating saves money or costs more in total. A lower monthly payment over a longer term can still cost more, which is why the total matters. The steps and chart show both routes with your own numbers.
How to use it
- In “Your debts now: name, balance, yearly rate %, monthly payment”, replace the example lines with one line per debt, such as “Card A 4500 23 160”.
- Enter the “New loan rate” and the “New loan term” in months from the offer.
- Under “Fees as”, choose a percentage of the loan or an amount, and enter the “Fees”.
- Choose whether the “Fees are” added to the loan or paid up front.
- Read whether it saves money, and compare the new payment and interest with your current ones.
Worked example
Take card A at 4,500 and 23% paid at 160 a month, card B at 2,500 and 20% paid at 90, and a loan of 3,000 at 14% paid at 110: 360 a month in all. As they are, the debts are cleared in 3 years 5 months with 3,544.64 of interest. A 36-month loan of 10,000 at 11%, with a 200 fee paid up front, costs 327.39 a month and 1,785.94 in interest. Consolidating saves 1,558.70 in total and lowers the monthly payment.
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Questions people ask
How do I know if debt consolidation will save me money?
Add up everything you would pay on your debts as they are, then everything you would pay on the new loan including its fees. If the second total is lower, it saves money; the calculator shows the difference as its main result.
Why can a lower monthly payment cost more?
A longer term spreads the debt over more months, so interest builds for longer. The monthly payment falls but the total paid can rise, especially once fees are added.
How are fees added to a consolidation loan?
If a fee is a percentage of the new loan and is added to it, you borrow enough to clear the debts and pay the fee: loan = debts ÷ (1 − fee %). If you pay the fee up front, you borrow only the debts and the fee is counted separately.
What is a common mistake after consolidating debt?
Running the old cards up again once they are cleared, which leaves you with the new loan and new debt. To compare a single card offer instead, see the balance transfer calculator.
What does this consolidation comparison leave out?
It assumes fixed rates, no new borrowing and that you keep today's payments if you don't consolidate. Early repayment charges, credit checks and the effect on your credit record depend on the lender and country; a free debt-advice service or a qualified adviser can help you weigh the offer.