Debt Consolidation Savings

Free Debt Consolidation Savings calculator with clear step-by-step results.

About Debt Consolidation Savings

Consolidation replaces several debts with one loan; the saving is the difference in annual interest.

Formula

Weighted APR = Σ(balance × rate) ÷ total balance

Worked example

With the default values below, Debt Consolidation Savings returns Current Weighted APR of 21.87%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Loan 1 balanceminimum 0 $: 5,000 $
Loan 1 APRaccepts 0–40: 19.99
Loan 2 balanceminimum 0 $: 3,000 $
Loan 2 APRaccepts 0–40: 24.99
Consolidation APRaccepts 0–40: 12

Results

Current Weighted APR: 21.87%
Current Annual Interest: $1,749.20
New Annual Interest: $960.00
Estimated Annual Savings: $789.20

Step by step

1Values used
2Formula
3Current Weighted APR= 21.87
4Current Annual Interest= $1,749.20
5New Annual Interest= $960.00
6Estimated Annual Savings= $789.20

Assumptions and limits

The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges 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

How does this calculator work?