Debt Consolidation Calculator
Check whether rolling several debts into one loan actually saves you money.
About Debt Consolidation Calculator
Consolidation is a genuine win when the new loan carries a meaningfully lower APR, the fees don't eat the savings, and you don't extend the term so far that extra years of interest wipe out the rate benefit. This calculator computes both scenarios fully so you can make an apples-to-apples comparison. The origination fee is capitalised into the loan principal because that's how lenders typically structure it.
Formulas
Weighted-average current rate
Blended rate = Σ (balance_j × rate_j) / Σ balance_j
- B_j
- Balance of debt j
- r_j
- Rate of debt j
New payment
Payment = (Principal + Origination fee) × rate / (1 − (1 + rate)^−n)
- P
- Original balance
- F
- Origination fee
- r
- Monthly rate
- n
- New term months
Worked example
With the default values below, Debt Consolidation Calculator returns New Monthly Payment of $474.52. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Total Existing Debt Balanceaccepts 1–10,000,000 $
- 18,000 $
- Weighted-Average Current APRaccepts 0–100 %
- 21 %
- Current Combined Monthly Paymentaccepts 1–500,000 $
- 600 $
- Consolidation Loan APRaccepts 0–100 %
- 11 %
- Consolidation Loan Termaccepts 6–360 months
- 48 months
- Origination Feeaccepts 0–20 %
- 2 %
Results
- New Monthly Payment
- $474.52
- Payment Change vs. NowNegative means a lower payment.
- -$125.48
- Total Interest SavedNegative means consolidation costs more in interest.
- $2,969.22
- Months to Payoff ChangeNegative means longer payoff after consolidation.
- -5.1
- New Total Interest
- $4,777.14
- Current Total Interest (est.)
- $7,746.36
- Origination Fee
- $360.00
Step by step
- 1Origination fee added to balance= $360.00 → new loan: $18,360.00
- 2New monthly payment= $474.52
- 3Estimated current payoff= 43 monthsBased on current combined payment against the blended rate.
- 4Interest: current vs. consolidated= Save $2,969
- 5Recommendation= Consolidation looks beneficial.
Assumptions and limits
- The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
Why might consolidation cost more even at a lower rate?
If the new loan stretches your repayment from, say, 24 months to 60 months, you're paying interest for more than twice as long. A lower rate applied over a much longer term can easily cost more total interest than a higher rate paid off quickly.
What should I use as the 'weighted-average current APR'?
For each debt, multiply its balance by its APR; sum those products; then divide by your total balance. For example, a $10,000 debt at 25% and a $5,000 debt at 15% gives a blended rate of (10,000×25 + 5,000×15)/15,000 = 21.67%.
Does consolidating affect my credit score?
Typically yes, in two ways: the hard inquiry when you apply temporarily lowers your score, while paying off revolving card balances improves your credit utilisation ratio, which is beneficial long-term. This calculator handles the math only.