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.
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.
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.
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.
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.
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.