Debt Consolidation Calculator
Consolidation trades many payments for one — sometimes cheaper, sometimes not. Compare your current path against a consolidation loan including fees to see whether the math actually works.
Your results
Charts & visualization
Total cost comparison
Everything paid from today until zero: balances plus interest, fees included.
Side-by-side summary
Key differences between the two paths.
Every chart’s underlying numbers are available as text — use the “view as table” control under each chart.
How it works
Two futures are priced completely:
- Stay — your current debts continue at their average APR with your current payment until they reach zero.
- Consolidate — the full balance refinances into one amortizing loan at the new rate and term; fees add to the total.
Savings come from three sources: a lower rate, a disciplined end date, or a longer timeline that lowers payments while raising total cost. The output separates those effects so a “lower payment” cannot masquerade as a bargain.
Formula used
Current path— balance accrues curApr ÷ 12 monthly until your payment clears itNew loan— standard amortizing payment over the chosen termWatch for— longer terms can raise lifetime interest even at lower rates
Example calculation
Keeping $18,000 of 21% debt on $450 monthly payments costs roughly $31,230 all-in over 5 yrs 10 mo. Consolidating at 11.9% over 48 months brings the payment to $473 (+$23/mo) with total cost near $23,060 including the $350 fee — netting about $9,830 in this direction. The win here comes from the rate drop and the hard end date.
Assumptions & limitations
- The blended APR represents your mixed debts accurately enough for planning.
- You stop using the cards being consolidated — new spending voids the math.
- Fees are paid upfront, not financed.
- Both paths assume consistent on-time payments.
Results are planning estimates based on your inputs and the stated assumptions — not financial advice or a loan offer. Verify important figures with your lender or advisor.
Frequently asked questions
When does consolidating debt make sense?
When the new APR is meaningfully lower, fees are modest, the term does not stretch so long that lifetime interest rises, and you will not re-run up the old accounts. All four conditions matter.
Does consolidation hurt my credit?
An application inquiry and a new account cause small temporary dips; paying down revolving balances typically improves utilization-based scores within months. Closing old cards immediately can shorten credit history — often better to keep them open unused.
Is a longer term ever smart?
For cash-flow relief, yes — but know the price. The calculator separates monthly relief from total cost so the trade-off is explicit rather than hidden.
Home equity loan or personal loan for consolidation?
HELOCs and home-equity loans offer lower rates but put your home at collateral risk. Personal loans are unsecured with higher rates. Never consolidate unsecured debt into secured debt without weighing that risk.