Free business debt consolidation calculator
Enter your existing debts and a new consolidation loan — this business debt consolidation calculator compares your current combined payment to the consolidated payment and total interest cost, updated live, as you type.
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No prepayment penalty assumed. Contact your lender to confirm extra payments apply to principal.
Results are estimates. Consult a professional.
How the business debt consolidation calculator works
Business debt consolidation replaces multiple existing loans — each with its own rate, term, and payment — with a single new loan. The calculator computes three things: (1) your current total monthly obligation across all existing debts using standard amortization, (2) the new consolidated monthly payment, and (3) the difference in total interest paid over the respective lifetimes. The core insight is that consolidation almost always reduces the monthly payment, but may increase total interest if the new term is significantly longer.
Consolidation makes the most financial sense when the new APR is meaningfully lower than the blended rate on existing debts, and when the term extension is modest. If you extend a short-term high-rate debt into a long-term lower-rate loan, the monthly payment drops dramatically — but total interest paid over the life of the loan may actually increase.
FDIC — Small Business Lending Survey and commercial loan guidance.Worked example: three business debts consolidated at 7%
A small manufacturer carries three debts: a $50,000 MCA at 12% APR (36 months remaining), a $75,000 equipment loan at 10% APR (60 months remaining), and a $100,000 business line at 8% APR (84 months remaining). They explore consolidating all $225,000 into a single SBA-backed term loan at 7% over 10 years.
Consolidated payment and total interest by debt size
The table below shows monthly payments and total interest cost for different consolidated loan amounts at two common consolidation rates over 10 years. Use this to compare what a lower rate actually saves in total interest versus what it costs monthly.
| Total Debt | 7% / 10yr Monthly | 8% / 10yr Monthly | Total Interest (7%) | Total Interest (8%) |
|---|---|---|---|---|
| $75,000 | $871 | $910 | $29,520 | $34,200 |
| $100,000 | $1,161 | $1,213 | $39,320 | $45,560 |
| $150,000 | $1,742 | $1,819 | $59,040 | $68,280 |
| $225,000 | $2,612 | $2,731 | $88,440 | $102,720 |
Source: Calculator-s.cloud amortization model; FDIC lending benchmarks.
Tips for consolidating business debt
Not every consolidation deal is worth taking. The monthly savings can look compelling, but if you're extending a 3-year debt into a 10-year loan, you're paying interest for seven extra years. Use the total interest comparison — not just the monthly payment — as your primary decision metric.
- Calculate your blended existing rate first — Weight each loan's rate by its outstanding balance to find the true average rate you're paying today. Consolidation only improves your rate position if the new APR is clearly below this blended rate.
- Beware term extension traps — A lower monthly payment achieved by stretching from 3 years to 10 years is not a win if total interest doubles. Run the total-cost comparison before signing any consolidation agreement.
- Check prepayment penalties on existing loans — Some MCAs and equipment loans charge substantial early payoff fees (sometimes 1–5% of outstanding balance). Include these in your cost comparison — they reduce the net savings.
- Consider SBA programs — The SBA 7(a) loan program offers competitive rates (prime + 2.25–4.75%) and terms up to 10 years for working capital consolidations. Qualifying businesses often get better rates through SBA-backed lenders than conventional bank loans.
- Use cash flow savings strategically — If consolidation genuinely frees up $1,000–$2,000 per month, deploy that capital into revenue-generating activities (marketing, inventory, hiring) rather than letting it drift into operating expenses.
Accuracy and limitations
This calculator models fixed-rate term loans with standard amortization for both existing and consolidated debts. It does not account for merchant cash advances with factor-rate pricing (not APR), revolving lines of credit where balances fluctuate, variable-rate loans that adjust with the prime rate, prepayment penalties on existing loans, loan origination fees on the new consolidated loan, or lender-specific underwriting adjustments. Always obtain written loan disclosures before comparing costs.
Not tax or financial advice. Business debt consolidation involves complex trade-offs between cash flow, total interest cost, collateral requirements, and credit impact. Tax treatment of interest expenses may differ between loan types. Consult a licensed financial advisor or CPA before consolidating significant business debt.
Business consolidation terms defined
About this business debt consolidation calculator
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