Debt Consolidation Calculator
Debt 1
Debt 2
Debt 3
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What Your Result Means
- Current monthly total: The sum of your existing debt payments. This is what you are paying today across all debts combined.
- New monthly payment: The single payment on the consolidated loan. If it is lower than your current total, consolidation reduces your monthly cash-flow burden.
- Current total interest: The cumulative interest you would pay if you kept making the same payments on each debt separately until they are all paid off.
- New total interest: The total interest on the consolidated loan over its full term. Compare this to the current total interest to see whether consolidation saves money overall.
- Interest saved: The difference between current total interest and new total interest. A positive number means consolidation saves you money; a negative number means you would pay more over time, even if the monthly payment is lower.
How This Calculator Works
You enter the balance, interest rate, and monthly payment for up to three existing debts, plus the rate and term of a potential consolidation loan. The tool calculates total interest on each existing debt at its fixed payment, then computes the monthly payment and total interest on a single new loan for the combined balance using the standard amortization formula. It compares the two scenarios to show monthly savings and lifetime interest savings. The calculation assumes fixed rates, no fees, and no additional borrowing.
Quick Questions
Does consolidation always save money?
Not necessarily. A lower rate saves interest, but extending the term can increase total interest even if the monthly payment drops. Always compare the "total interest" figures, not just the monthly payment. A shorter term at a lower rate is the ideal combination.
What about balance transfer fees or origination fees?
This calculator does not include fees. Balance transfers typically charge 3–5% of the transferred amount, and personal loans may have origination fees of 1–8%. Add those costs to the new loan balance for a more realistic comparison.
Should I consolidate federal student loans into a private loan?
Consolidating federal loans into a private loan forfeits federal protections like income-driven repayment, Public Service Loan Forgiveness, and deferment options. Weigh the rate savings against losing those benefits before deciding.
What does "Never pays off" mean?
If your monthly payment on a debt does not cover the monthly interest charge, the balance grows instead of shrinking. You would need to increase payments above the interest threshold for that debt to be paid off.
Sources
- CFPB — What Is a Debt Consolidation Loan? (overview, risks, and consumer guidance)
- FTC — Debt Management Plans (alternatives to consolidation loans)
- Federal Reserve G.19 — Consumer Credit (average personal loan and credit card rates)
Method & review
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.