Debt Consolidation Calculator
Check whether rolling several debts into one loan lowers your payment and total interest.
About the Debt Consolidation Calculator
List each debt with its balance, APR and minimum payment, then enter the consolidation loan's rate, term and fee. The calculator compares the new monthly payment, the time to clear and the total interest and fees with paying your current minimums.
Debt consolidation replaces several debts with one loan, ideally at a lower rate. It saves money only if the new rate (including fees) is lower and you don't run the old cards back up.
The formula
New payment = (total debt + fees) × i ÷ (1 − (1 + i)⁻ⁿ)
Worked example
The four debts on this page, 20,600 in total, with 615 a month of minimums
- Consolidated at 11% over 4 years with a 300 fee: 540.17 a month
- Interest and fees: 5,328
- Versus 6,159 on the current minimums: a saving of 831
Things to keep in mind
- Assumes you close or stop using the old cards.
Questions people ask
Does consolidation hurt my credit?
A new application causes a small, temporary dip; on-time payments help over time.
Is a longer term better?
It lowers the payment but can increase total interest.
What about a balance transfer card?
If you can clear the debt within a 0% period, it can beat a loan; see the Balance Transfer Calculator.