# Debt Consolidation Calculator

URL: https://speedycalculator.com/calculators/finance/debt-consolidation/
Last updated: 2026-10-25

> The debt consolidation calculator compares keeping your current debts with combining them into one consolidation loan – the monthly payment, months to be debt-free, total interest and fees – so you can see whether consolidating saves money.

## Inputs

- Number of debts
- Debt 1 – balance
- Debt 1 – interest rate (%)
- Debt 1 – minimum payment
- Debt 2 – balance
- Debt 2 – interest rate (%)
- Debt 2 – minimum payment
- Debt 3 – balance
- Debt 3 – interest rate (%)
- Debt 3 – minimum payment
- Debt 4 – balance
- Debt 4 – interest rate (%)
- Debt 4 – minimum payment
- Debt 5 – balance
- Debt 5 – interest rate (%)
- Debt 5 – minimum payment
- Debt 6 – balance
- Debt 6 – interest rate (%)
- Debt 6 – minimum payment
- Extra monthly payment
- Payoff method
- Consolidation loan rate (to compare) (%)
- Consolidation loan term (months)
- Consolidation loan fee

## Results

- Total debt
- Total minimum payments
- Monthly payment budget
- Months to be debt-free
- Total interest
- Total paid
- Interest saved vs minimum payments
- Order in which debts are paid off
- Consolidation loan monthly payment
- Comparison of all methods

## Formula

```
Each month every debt gets its minimum payment; the extra payment (plus minimums freed up by debts already repaid) goes to the target debt
Snowball target = smallest balance; avalanche target = highest interest rate
Interest each month = balance × rate ÷ 12
Consolidation: one loan with payment = (total + fee) × i ÷ (1 − (1 + i)^−n)
```

## Explanation

A consolidation loan replaces several debts with one fixed payment, ideally at a lower rate. It saves money only if the rate and fees are lower and you don't run the old cards back up. A longer term can lower the payment but raise total interest. Everything is calculated in your browser, so nothing you type is sent to our server.

### How to use the Debt Consolidation Calculator

- **Number of debts**
- **Debt 1 – balance**
- **Debt 1 – interest rate**
- **Debt 1 – minimum payment**
- **Debt 2 – balance**
- **Debt 2 – interest rate**
- **Debt 2 – minimum payment**
- **Debt 3 – balance**
- **Debt 3 – interest rate**
- **Debt 3 – minimum payment**
- **Debt 4 – balance**
- **Debt 4 – interest rate**
- **Debt 4 – minimum payment**
- **Debt 5 – balance**
- **Debt 5 – interest rate**
- **Debt 5 – minimum payment**
- **Debt 6 – balance**
- **Debt 6 – interest rate**
- **Debt 6 – minimum payment**
- **Extra monthly payment**
- **Payoff method**
- **Consolidation loan rate (to compare)**
- **Consolidation loan term**
- **Consolidation loan fee**

Everything runs in your browser, so results appear instantly and nothing you type is sent to a server.

### How it works

Choose how many debts you have and enter each balance, rate and minimum payment, your extra monthly payment and the payoff method; optionally compare a consolidation loan.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

## Worked example

Inputs — Number of debts: 3; Debt 1 – balance: $2,500; Debt 1 – interest rate: 12 %; Debt 1 – minimum payment: $75; Debt 2 – balance: $6,000; Debt 2 – interest rate: 24 %; Debt 2 – minimum payment: $150; Debt 3 – balance: $12,000; Debt 3 – interest rate: 8 %; Debt 3 – minimum payment: $250; Debt 4 – balance: $3,000; Debt 4 – interest rate: 12 %; Debt 4 – minimum payment: $60; Debt 5 – balance: $1,500; Debt 5 – interest rate: 27 %; Debt 5 – minimum payment: $40; Debt 6 – balance: $8,000; Debt 6 – interest rate: 6 %; Debt 6 – minimum payment: $180; Extra monthly payment: $200; Payoff method: Minimum payments only; Consolidation loan rate (to compare): 11 %; Consolidation loan term: 48 months; Consolidation loan fee: $300.

Results — Total debt = $20,500; Total minimum payments = $475; Monthly payment budget = $475; **Months to be debt-free = 82**; Total interest = $9,258.16; Total paid = $29,758.16.

## FAQ

**Does debt consolidation save money?**
If the new rate (including fees) is lower than your current average rate.

**Does consolidation hurt my credit?**
Briefly, from the inquiry; lower utilization can then help.

**What are the alternatives?**
A 0% balance transfer card, a home equity loan or a debt management plan.

**What formula does the Debt Consolidation Calculator use?**
Each month every debt gets its minimum payment; the extra payment (plus minimums freed up by debts already repaid) goes to the target debt.


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)