Debt Consolidation Calculator
See whether consolidating multiple debts into one loan would lower your total monthly payment.
Monthly savings
$66.06
What Your Result Means
This adds up all your current debts and their monthly payments, then compares that against a single consolidated loan at your entered rate and term - showing whether consolidation would save or cost you money each month.
How It Is Calculated
New Payment = Total Balance × [r(1+r)^n] / [(1+r)^n - 1]
Worked Example
Two credit cards totaling $8,000 with $240/month in combined minimum payments, consolidated into a 5-year loan at 11% APR, would drop the monthly payment to roughly $174 - saving about $66/month.
Important Assumptions
- A lower monthly payment often means paying interest over a longer period - compare total interest paid too, not just the monthly amount.
- Actual consolidation loan rates depend on your credit score and the lender.
Frequently Asked Questions
- Does a lower monthly payment always mean I save money overall?
- Not necessarily. Stretching payments over a longer term can lower the monthly amount but increase total interest paid over the life of the loan. Compare both figures before deciding.
- What are common ways to consolidate debt?
- Personal loans, balance transfer credit cards, and home equity loans are common consolidation options, each with different rates, fees, and risks.
Related Calculators
Debt Payoff Calculator
Compare the snowball and avalanche methods to pay off multiple debts faster.
Debt-to-Income Ratio Calculator
Calculate your debt-to-income (DTI) ratio, a key number lenders use to evaluate loan applications.
Credit Card Payoff Calculator
Find out how long it will take to pay off a credit card balance.
Methodology
This calculator uses the standard amortizing loan formula. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.