Business Debt Consolidation Calculator
Compare your current business debts with a single consolidation loan to see the new payment, payoff time and interest saved.
A worked example
Running this tool on current national benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)) — swap in your own numbers to see how the result moves.
- Total business debt
- $80,000
- Current average rate
- 16%
- Current monthly payment
- $2,200
- Consolidation loan rate
- 9%
- Consolidation term (years)
- 5
new payment $1,660.67/mo
- New monthly payment$1,660.67
- New total interest$19,640
- Current total interest$30,173
How the interest you could save changes with total business debt
Holding the other inputs at the example above, here is how the result moves as total business debt changes.
| Total business debt | Interest you could save | New monthly payment |
|---|---|---|
| $40,000 | $3,706 | $830.33 |
| $60,000 | $345 | $1,245.50 |
| $80,000 | $10,533 | $1,660.67 |
| $120,000 | $66,349 | $2,491.00 |
| $160,000 | $381,481 | $3,321.34 |
The math behind it
The calculator models your existing debts two ways and compares them. For what you have now, it simulates your current balance at your current average rate against your current monthly payment to find how long payoff takes and the total interest along the way. For the consolidation loan, it fully amortizes the same balance at the new rate over the new term. Interest saved is your current total interest minus the consolidated total interest. It also shows the monthly cash flow freed — your old payment minus the new one.
Assumptions & limits
- It rolls all your debts into one balance at a single average rate; the mix and individual rates of the original debts are not modeled separately.
- The current payoff assumes you keep paying exactly your current monthly amount until the balance clears.
- If your current payment is too small to cover the interest, the current debt never pays off and its total interest is treated as effectively infinite.
- The consolidation loan is a fixed-rate, fully amortizing loan with no balloon.
- Origination fees, balance-transfer fees, and prepayment penalties on the old debts are not included — add them when comparing offers.
Common questions
Does a longer consolidation term always save money?
No. A longer term lowers the monthly payment but can raise the total interest you pay, even at a lower rate, because you owe for more years. The calculator will show 'Extra interest' rather than savings when that happens. Consolidation can still be worth it for the cash-flow relief, but weigh that against the added lifetime cost.
What is the difference between the interest saved and the cash flow freed?
Interest saved is a lifetime figure — the total finance charge you avoid over the whole payoff. Cash flow freed is a monthly figure — how much your payment drops right now. A consolidation can free monthly cash while still costing more interest overall if it stretches the term. Both matter, but they answer different questions.
Should I consolidate high-interest business debt?
Consolidation tends to help most when it lowers your average rate and keeps the term reasonable, turning several payments into one predictable bill. It helps least when the new loan simply stretches the same debt over more years. Check that any origination or transfer fees, which this tool does not include, do not eat the savings.