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Debt Consolidation Calculator

See your single payment after rolling debts into one loan.

How it is calculated

The tool treats the consolidation as one ordinary amortising loan. The monthly rate is i = annual_rate / 100 / 12 and the payment is PMT = P × i / (1 − (1 + i)−n), where P is the combined balance you enter and n is the term in months. If the rate is 0, the payment is simply P / n. Total cost is PMT × n and total interest is total cost minus P. The rate you enter is the new loan's rate, not an average of your old debts, and no origination fee, balance-transfer fee or insurance is added, so any such charge must be considered separately.

Worked example

Say three cards and a personal loan add up to $18,000 and a lender offers one loan at 9.5% for 48 months. The monthly rate is 9.5 / 100 / 12 ≈ 0.0079167. Plugging into the formula gives a payment of $452.22 a month. Over 48 payments that is $21,706.39 in total, so the interest cost is $21,706.39 − $18,000 = $3,706.39. Compare that figure with what the old debts would cost you over the same period.

Try this example →

Common mistakes

  • Entering the rate in the wrong form: type 9.5 for 9.5%, not 0.095.
  • Entering the term in years: the field is in months, so a 4-year loan is 48.
  • Typing a single old card's interest rate instead of the rate the consolidation lender actually offers.
  • Judging only by the lower monthly payment: stretching the term can cut the payment while raising total interest, so check the total interest line too.
  • Forgetting fees: origination or transfer fees are not included, so the real cost is a little higher than shown.

Sources

About this calculator

Debt consolidation combines several separate debts — credit cards, personal loans, medical bills — into a single new loan, ideally at a lower blended interest rate than the weighted average of the original debts. Instead of juggling multiple due dates and minimum payments, the borrower makes one monthly payment on the new consolidation loan.

Whether consolidation actually saves money depends entirely on the new rate and term compared with the old debts: a lower rate can cut total interest paid, but stretching the payoff over a longer term can sometimes increase total interest even at a lower rate. Add up your existing debts yourself and enter the combined balance, along with the new loan's annual interest rate and term in months; this calculator then shows the resulting monthly payment, total cost and total interest, so the new terms can be compared directly against what was being paid before.

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