Debt Consolidation Calculator
Compare your current debts with one fixed-rate consolidation loan. Enter balances, APRs and current monthly payments, then test a new rate, term, origination fee and extra payment.
How to compare a consolidation loan
Enter each outstanding balance, its annual percentage rate and the fixed monthly payment you plan to keep making. The calculator estimates every current payoff separately, then compares their combined interest with one amortizing consolidation loan.
Financed fee versus upfront fee
A financed origination fee raises the new principal, so interest accrues on it. An upfront fee does not raise the principal, but it is still included in the comparison cost. If a lender deducts the fee from proceeds instead, make sure the loan provides enough net cash to pay every balance.
Worked example
The starting example combines US$20,500 across three debts. It compares current payments totaling US$600 per month with a 60-month loan at 11.5% APR and a 3% financed origination fee. The results show whether the lower rate offsets the fee, how the payment changes and how long each path takes under fixed-payment assumptions.
Important limits
This is an educational estimate, not a loan offer, credit decision or financial advice. It assumes fixed APRs, monthly compounding, fixed current payments, no new charges, no late fees, no promotional-rate changes and payments made on time. Credit cards often use daily interest and minimum payments that change with the balance. Lender payoff amounts, fee treatment, prepayment rules and disclosed APR can differ.
The calculator does not measure approval odds, credit-score effects, taxes, secured-loan risks or whether consolidating is appropriate. Review each lender disclosure and confirm that the new proceeds cover all balances and fees.
Related calculators
- Debt Payoff Calculator — compare snowball and avalanche strategies without refinancing.
- Credit Card Payoff Calculator — solve one revolving balance or target payoff term.
- Personal Loan Calculator — analyze a standalone loan, fees and effective APR.
- Debt-to-Income Calculator — compare required monthly debt payments with gross income.
Frequently asked questions
Does the calculator assume I stop using the old accounts?
Yes. New purchases, cash advances and fees are not included. Adding debt after consolidation would change both the payoff date and total cost.
Why can consolidation cost more at a lower APR?
An origination fee or a much longer payoff period can outweigh the rate reduction. The comparison counts the fee and simulates the entered term so that tradeoff is visible.
What if a current payment is too small?
If a payment does not cover the first estimated month of interest, the calculator stops and asks you to review the inputs. That prevents a misleading payoff estimate for a growing balance.