Use our Debt Consolidation Calculator to compare your current debt payoff plan against a single consolidation loan. See potential monthly payment changes, total interest costs, and how quickly you could become debt-free.
What the Debt Consolidation Calculator does
Debt consolidation combines multiple debts into one new loan, ideally at a lower interest rate and with a clear payoff timeline. This calculator estimates your weighted average interest rate across all debts, then compares your current payoff approach (using your stated monthly budget) to a new consolidation loan with the term and APR you choose. It shows estimated monthly payments, total interest, and time to payoff, helping you judge if consolidation could save money or simply make payments more predictable.
How to use the calculator effectively
- List up to five debts, entering each balance and APR. Only one debt is required to get results.
- Enter the monthly amount you can commit to debt payoff. This lets us estimate your current payoff timeline.
- Enter a potential consolidation APR and term. If you know your lender’s origination fees, add them too.
- Compare monthly payments, total interest, and how long it takes to become debt-free under each scenario.
What your results mean
The calculator produces three key comparisons:
- Monthly payment change: How the consolidation payment compares to your current budget. A lower payment may improve cash flow, while a higher payment may shorten your payoff timeline.
- Total interest difference: The estimated interest you’d pay with consolidation versus continuing your current plan. Positive savings suggest consolidation could cut costs.
- Time to debt-free: Whether consolidation speeds up or slows down your payoff, based on your inputs.
When consolidation can help
Consolidation is most powerful when it lowers your interest rate and keeps (or increases) your monthly payment. By reducing interest, more of each payment goes toward principal, often cutting months or years off your payoff timeline. It can also simplify your life with a single payment date and fixed payoff schedule.
Smart tips before you consolidate
- Shop multiple lenders: Rates and fees vary. Even a small APR difference can meaningfully reduce interest.
- Watch origination fees: Fees raise the loan amount. Include both percentage and flat fees for a clear picture.
- Avoid new debt: Consolidation frees up credit lines. Avoid running balances back up, or savings may evaporate.
- Match the term to your goals: Shorter terms usually reduce total interest, while longer terms can lower monthly payments.
- Consider 0% balance transfers: If you can qualify and pay off during the promo period, they may beat a fixed-rate loan.
Limitations and assumptions
This Debt Consolidation Calculator treats your current debts as a single blended balance at a weighted average APR to estimate payoff using your budgeted monthly payment. Actual results with multiple debts may vary based on how payments are allocated, changing minimum payments, and individual creditor terms. The consolidation scenario uses standard amortization to estimate fixed payments over your chosen term. Your actual payment schedule, fees, or prepayment choices can change outcomes.
Next steps
Run a few scenarios: test different APRs, terms, and monthly payments to see how sensitive your payoff is to each factor. If consolidation shows savings and a manageable monthly payment, consider applying with a reputable lender and confirming the exact terms and fees. If savings are small or negative, you may be better off increasing your monthly payments, pursuing a balance transfer offer, or using a targeted payoff strategy like the debt avalanche.
Ultimately, the right move is the one that keeps you on track to eliminate debt for good. Use this calculator to make a confident, numbers-driven decision.