How to use the debt consolidation calculator
- List each debt with its balance, APR and the monthly amount you pay now.
- Enter the rate, term and fees of the consolidation loan you are considering.
- Compare the monthly payment, time to debt-free and total interest for both approaches.
- Check the per-debt table: any debt whose payment does not cover its interest is flagged.
Worked example
Three cards ($6,000 at 22%, $3,500 at 19%, $1,500 at 26%) vs an 11% loan over 36 months
Paying $200, $120 and $60 a month ($380 total) clears the cards in 44 months with $4,707.41 of interest. An $11,000 loan at 11% for 36 months costs $360.13 a month and $1,964.53 in interest, saving about $2,742.88 and finishing 8 months sooner.
How it works
Each current debt is simulated month by month: interest = balance × APR ÷ 12 (rounded to the cent), then your payment is applied, until the balance reaches zero. If a payment is not larger than the monthly interest the debt never pays off and is flagged. The consolidation loan is amortized with the standard fixed-payment formula. Savings = total paid on current debts − (loan payments + fees paid in cash).
Assumptions
- You keep paying the same amount on each current debt and add no new charges.
- Rates, balances, payments and loan terms are values you enter.
- Card interest is modelled as APR ÷ 12 on the balance each month; card issuers may use daily balances.
Frequently asked questions
Is a lower monthly payment always better?
No. A longer loan term can lower the payment while increasing the total interest. The comparison shows both.
What if one of my debts never gets paid off?
If a payment does not cover the monthly interest the balance never falls. The calculator flags it; increase that payment to see a payoff date.
Does consolidation affect my credit?
Applying for a loan and closing or keeping card accounts can affect credit scores in different ways. This tool only compares costs.
Limitations
- Does not model balance transfer promotions, penalty rates or minimum payments that fall as balances shrink.
- Assumes no new borrowing after consolidating.