Debt Consolidation Calculator

Debt consolidation combines multiple debts into one loan, ideally at a lower interest rate. This calculator compares your current debt costs against a consolidation loan so you can see whether consolidating saves or costs money.

1. Enter each debt with its current balance, interest rate, and minimum monthly payment. You can add up to 4 debts.
2. Enter the consolidation loan terms: the interest rate you expect to qualify for and the loan term.
3. Review the results. The calculator shows the total interest paid under each scenario and flags whether consolidation saves money.

A green result means consolidation saves interest. A red result means the consolidation loan will cost more over time (often because of a longer term, even if the rate is lower). Factor in any origination fees the lender charges.

Total interest on current debts is calculated by simulating each debt paid at its minimum payment until the balance reaches zero:

Each month: Interest = Balance × (Rate / 12) Principal = Min Payment - Interest New Balance = Balance - Principal

Consolidation loan payment:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where P = total debt, r = monthly rate, n = term in months.

Example: Three debts totaling $16,000 at 22%, 19%, and 15% with $400 combined minimum payments. Total interest at minimums: roughly $7,800. Consolidation loan: $16,000 at 10% for 5 years. Monthly payment = $339.80. Total interest = $4,390. Savings: about $3,410.

Watch for: A lower rate does not always mean savings. A longer term (e.g., consolidating 2-year credit card debt into a 7-year loan) can cost more total interest even at a lower rate.