Debt Consolidation Calculator
Roll multiple credit cards, store accounts, and high-interest personal loans into a single fixed monthly payment to lower your effective interest rate and accelerate your debt-free date.
$1,091.04
New payment: $724.47/mo vs Current total: $889.75/mo
$28,700.00
Total principal$7,364.35
Separate debts$6,074.31
Under consolidated note4 yr
vs 4 yr 3 mo baselineCalculation is instantly saved in this shareable URL.
🗄️ Saved Comparison Scenarios (Side-by-Side)
Current Outstanding Debts Audit
Itemized breakdown of existing credit lines, interest rates, and projected financing charges.
| Debt Account Name | Outstanding Balance | Monthly Payment | Months to Payoff | Remaining Interest |
|---|---|---|---|---|
| Credit card | $8,500.00 | $260.00 | 51 mo | $4,552.70 |
| Auto loan | $14,200.00 | $439.75 | 36 mo | $1,631.16 |
| Personal loan | $6,000.00 | $190.00 | 38 mo | $1,180.49 |
How Debt Consolidation Works
Debt consolidation combines several high-interest debts — like revolving credit cards charging 18% to 28% APR — into a single fixed installment loan with an interest rate between 7% and 13%. When executed correctly, consolidation lowers your weighted average cost of capital, simplifies your monthly finances, and locks in a guaranteed debt-free deadline.
1. Weighted Average Interest Rate
Consolidation only saves money if the new fixed loan interest rate is strictly lower than your portfolio's weighted average interest rate. If you consolidate low-rate debt with high-rate debt into a middle-rate loan, calculate whether fees outweigh the interest reduction.
2. Term Length Discipline
Extending debts that would have been paid off in 2 years into a 5-year or 7-year consolidation note can result in paying more total interest overall, even with a lower interest rate. Always match the new loan term as closely as possible to your existing payoff horizon.
3. Close Revolving Accounts
The biggest risk of debt consolidation is behavioral: paying off credit cards frees up credit lines that borrowers inadvertently reuse. Retaining zero-balance cards or closing them prevents dangerous debt accumulation.
Calculation Methodology & Proof
Debt consolidation
Pay off several amortizing debts with one new loan and compare interest and time.
- If a debt has a payment but no term, infer remaining months; if it has a term but no payment, compute the payment.
- Sum balances and remaining interest.
- Amortize the new loan; subtract fees from 'savings' when they are paid in cash.
Important Caveats & Planning Assumptions
- Does not model variable APRs, late fees, or promotional 0% cliffs.
- Closing a revolving account can also affect credit utilization.
Frequently Asked Questions
Expert answers to common questions
Does a lower payment always save money?
No. Extending the term can cut the payment and increase total interest. Watch interest savings, not only the monthly figure.
Should I include 0% promotional balances?
Include them if the promo ends inside the new term. A consolidation loan may lock in a higher rate than a temporary 0%.
Are fees worth it?
Add origination or balance-transfer fees. If they wipe out interest savings, keep the separate loans or negotiate the fee.