🔗 Debt Consolidation Calculator
Compare your current debt payments against a new consolidation loan to see if combining your debts saves you money.
Current Debt
Consolidation Comparison
Current payoff timeline is estimated by applying your current total monthly payment to the total debt at the current average APR. Results are estimates — actual consolidation loan terms depend on your credit and lender.
How the Debt Consolidation Calculator Works
This calculator estimates how long it would take to pay off your current debts at your existing payment and interest rate, then compares that to a new consolidation loan that combines everything into one fixed monthly payment.
Formula
where L = total debt, r = new monthly rate, n = new term in months
Current payoff: simulated month by month, applying current payment to declining balance at current APR
What to Consider
- Lower rate, same payment — pays off debt faster and saves interest
- Lower payment, longer term — eases monthly cash flow but may increase total interest paid
- Fees — origination or balance transfer fees aren't included here and can offset savings
Frequently Asked Questions
Does debt consolidation always save money?
Not always. It typically saves money when the new interest rate is meaningfully lower than your current average rate. If the new term is much longer, you could pay more in total interest even at a lower rate.
What's a good APR for a consolidation loan?
It depends on your credit score, but any rate meaningfully below your current average APR (especially credit card rates of 18-29%) is usually worth considering.
Should I consolidate credit card debt?
Consolidating high-interest credit card debt into a lower-rate personal loan or balance transfer can save significant interest, provided you avoid running the cards back up.