Debt Consolidation Calculator
Check whether rolling several debts into one loan actually saves you money.
Inputs
Estimate by weighting each debt's APR by its balance share.
Charged as a percentage of the loan amount. Added to the loan balance.
New Monthly Payment
$474.52
Payment Change vs. Now
-$125.48
Negative means a lower payment.
Total Interest Saved
$2,969.22
Negative means consolidation costs more in interest.
Months to Payoff Change
-5.1
Negative means longer payoff after consolidation.
New Total Interest
$4,777.14
Current Total Interest (est.)
$7,746.36
Origination Fee
$360.00
Step by step
Origination fee added to balance
$18,000.00 × 2%
= $360.00 → new loan: $18,360.00
New monthly payment
PMT($18,360.00, 0.9167%, 48)
= $474.52
Estimated current payoff
= 43 months
Based on current combined payment against the blended rate.
Interest: current vs. consolidated
$7,746 vs. $4,777
= Save $2,969
Recommendation
= Consolidation looks beneficial.
How it works
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
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.