Debt Consolidation Calculator

What this calculator does

The debt consolidation calculator compares your current debts against a single consolidation loan. You enter the balances, rates, and minimum payments on your existing debts plus the rate, term, and fees on the new loan. The calculator shows your total interest with and without consolidation, your monthly payment change, and how long each path takes to pay off.

When to use this method

Use this tool when you are offered a consolidation loan and want to know if it actually saves money. A lower rate can cut total interest, but fees or a longer term can wipe out those savings. If your goal is a simpler payment rather than lower cost, this calculator still shows the trade-off clearly. Before committing, check your debt-to-income ratio to see how the new loan affects your borrowing profile.

How to get started

Collect your last statements for the debts you want to consolidate. Enter each balance, APR, and minimum payment. Then add the consolidation loan terms: APR, term length, and any origination or balance-transfer fees. Hit calculate and compare the numbers side by side. If the new loan saves money and shortens your payoff, it may be worth pursuing. If it only lowers your monthly payment by stretching the term, the debt avalanche calculator may be a cheaper route without taking out new credit.