Free debt consolidation calculator
See how consolidating multiple debts into one loan reduces your monthly payment and total interest — compare before and after, updated live, as you type.
On this page10 sections
No prepayment penalty assumed. Contact your lender to confirm extra payments apply to principal.
Results are estimates. Consult a professional.
How the debt consolidation calculator works
Debt consolidation replaces multiple high-interest debts with a single new loan at a lower rate. The calculator sizes the new monthly payment, compares it to your current combined payments, and shows whether you save money on a monthly basis and over the full repayment period — because a lower monthly payment does not always mean less total interest if the new term is much longer.
Worked example: consolidating 3 debts totalling $25k
A borrower carries three debts with a combined balance of $25,000 and combined minimum payments of $850/month. A bank offers a $25,000 personal loan at 10% APR over 5 years (60 months) to consolidate everything.
Consolidated payment vs original payment by debt amount
All consolidation scenarios below assume 10% APR over a 5-year (60-month) term. 'Old payment' is a representative combined minimum based on typical credit and loan minimums for that balance level.
| Total Debt | Consolidation Rate | New Payment | Total Interest |
|---|---|---|---|
| $10,000 | 10% / 60 mo | $212 | $2,748 |
| $25,000 | 10% / 60 mo | $531 | $6,860 |
| $50,000 | 10% / 60 mo | $1,062 | $13,719 |
| $75,000 | 10% / 60 mo | $1,594 | $20,579 |
Source: CFPB debt consolidation guide; calculations use standard amortization formula
Tips for debt consolidation
Consolidation is a tool, not a cure. Without addressing the spending habits that created the debt, borrowers often accumulate new balances on the cards they just cleared, ending up with more total debt than before.
- Compare total interest, not just monthly payments — a longer term reduces the payment but increases total interest; always run both numbers before deciding.
- Close or freeze the accounts you paid off — leaving credit cards open with zero balances is a temptation; consider freezing them or setting spending alerts.
- Check your credit score first — the advertised consolidation rate often requires a score of 700+; know your number and shop at least three lenders before accepting an offer.
- Factor in origination fees — personal loan origination fees of 1%–6% add to the real cost; include them in the total-interest comparison.
- Keep making your old payments if possible — even after consolidation, continuing to pay the original combined amount each month instead of just the minimum will slash both the term and total interest dramatically.
Accuracy and limitations
This calculator uses standard amortization math for the new consolidated loan and a simple remaining-interest sum for the existing debts. It does not account for variable rates on existing debts, balance transfer fees, origination fees on the new loan, or the impact of consolidation on your credit score. Actual lender terms, rates, and approval depend on your credit profile.
Not financial advice — consult a financial professional for your specific situation.
Debt consolidation terms defined
About this debt consolidation calculator
This calculator runs entirely in your browser — nothing you enter is sent to any server.
Browse more in our finance calculators, or explore the complete library on the free calculators page.