Debt Consolidation Calculator
Compare your current debts to a single consolidation loan — payment, interest and payoff time.
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 debt balance
- $25,000
- Current average APR
- 19%
- Current total monthly payment
- $650
- Consolidation loan rate
- 11%
- Consolidation term (years)
- 4
consolidated payment $646.14/mo
- New monthly payment$646.14
- New total interest$6,015
- Current total interest$13,853
How the interest you could save changes with total debt balance
Holding the other inputs at the example above, here is how the result moves as total debt balance changes.
| Total debt balance | Interest you could save | New monthly payment |
|---|---|---|
| $15,000 | $207 | $387.68 |
| $20,000 | $2,822 | $516.91 |
| $25,000 | $7,838 | $646.14 |
| $40,000 | $101,964 | $1,033.82 |
| $50,000 | — | $1,292.28 |
The math behind it
The calculator models your existing debts as a single balance being paid down at your current average APR and current total monthly payment, then compares that to a new consolidation loan that repays the same balance over a fixed term at a new rate. It computes the payoff time and total interest for the current path and the amortized interest for the consolidation loan, and reports the difference. A lower rate or shorter payoff usually saves interest; a longer term can lower the payment but raise total cost.
Assumptions & limits
- Your current debts are treated as one blended balance at one average APR paid with your stated total monthly payment.
- The consolidation loan is a fixed-rate amortizing loan over the term you choose.
- Balance transfer fees, origination fees and any teaser-rate periods are not included — factor them in separately.
- It assumes you stop adding new debt to the paid-off accounts, which is the biggest real-world risk to the savings.
Common questions
Does consolidating always save money?
No. Consolidation saves interest only when the new rate is low enough and the term short enough to beat your current path. Stretching the same balance over a longer term can lower your monthly payment while increasing the total interest you pay. The calculator flags when a scenario costs more overall.
How does a longer term lower my payment but cost more?
A longer term spreads the balance over more months, so each payment is smaller — but you are borrowing the money for longer, and interest accrues the whole time. It is entirely possible to cut your monthly payment and still pay thousands more in total interest. Watch both numbers, not just the payment.
What costs does this estimate leave out?
Origination fees on a personal consolidation loan and balance-transfer fees on a card (commonly a few percent of the amount moved) are not included here. It also assumes you do not run the old balances back up. Add any fees to the consolidation side before deciding.