Debt Consolidation Calculator
Consolidating several debts into one loan can lower your monthly payment, your interest rate, or both — but not always. Enter your current debt and a consolidation offer to see how the payments and total interest compare.
Debt Consolidation Calculator
How this calculator works
Debt consolidation replaces several debts with one new loan. You use the new loan to pay off the old balances, then make a single payment to the new lender. The benefit comes from a lower interest rate, a longer term that reduces the monthly payment, or both. The risk is that a longer term can lower the payment while raising the total interest you pay.
This tool models both sides. For your current debts it simulates the payoff month by month at your average APR and total payment to find the payoff time and total interest. For the consolidation loan it computes the fixed payment using the standard amortisation formula over the term you enter, then totals the interest. Comparing the two shows whether consolidation really saves money.
Only your figures are used; no rate, fee or balance-transfer offer is assumed. Consolidation works best when the new APR is genuinely lower than the average rate on the existing debts and you keep the term short enough that total interest falls. If the new payment is lower but the term is much longer, check the interest change row before deciding.
Frequently asked questions
Will consolidation lower my monthly payment?
Usually, if the new term is longer or the new rate is lower. A lower payment alone is not a saving, though — compare the total interest as well, because a long term can cost more overall.
Does consolidation hurt my credit score?
It can lower your score slightly at first because of the new credit inquiry and a new account, but it may help over time if it lowers your credit utilisation and you make every payment on time.
Should I close the paid-off cards?
Closing accounts reduces your available credit and can raise your utilisation ratio, which may hurt your score. Many people keep the accounts open with a zero balance, but avoid running up new debt.
What if the consolidation rate is higher?
Then consolidation may still reduce the payment by stretching the term, but total interest will likely rise. The interest change row shows the effect directly.
Does this include consolidation fees?
No. If the new loan has origination or balance-transfer fees, add them to the total debt or treat them as extra interest. The APR calculator can help you see their effect.
Check your rate with a lending partner in about two minutes. Checking does not affect your credit score.
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