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