Debt Consolidation Calculator
Compare your current debts to a consolidation loan and see if you can save money
How to Use This Debt Consolidation Calculator
- Add each of your current debts with balance, interest rate, and minimum payment
- Click 'Add Debt' to include additional accounts (credit cards, personal loans, etc.)
- Enter the interest rate you'd receive on a consolidation loan (check pre-qualification offers)
- Set your desired loan term (longer term = lower payment but more interest)
- Click 'Calculate Consolidation' to see if consolidation saves you money
- Review the comparison showing current vs. consolidated total costs
Example: You have: $5,000 at 22% ($150/mo), $3,000 at 19% ($100/mo), $8,000 at 12% ($250/mo) = $16,000 total, $500/mo combined. A consolidation loan at 8% for 5 years: $324/mo, saving $176/mo. Total interest drops from $6,200 to $3,440, saving $2,760 overall.
Tip: Get pre-qualified with multiple lenders before applying—this only does a soft credit pull and shows you realistic rates to use in calculations.
Why Use a Debt Consolidation Calculator?
Debt consolidation can simplify your payments and reduce interest costs—but only if the math works in your favor. This calculator shows you the truth before you commit.
- Determine if you'll actually save money by consolidating
- Compare different loan terms to find the right balance of payment and total cost
- See the impact of the interest rate you qualify for
- Calculate how much you'd save monthly and overall
- Evaluate whether to consolidate all debts or only high-interest ones
- Make informed decisions instead of falling for debt consolidation marketing
Understanding Your Results
Focus on total cost, not just monthly payment. A longer term can lower payments but cost more overall.
| Result | Meaning | Action |
|---|---|---|
| Saves 20%+ on total interest | Strong candidate for consolidation | Proceed if you won't accumulate new debt |
| Saves 10-20% on total interest | Moderate benefit | Consider consolidation, especially if simplification helps you stay on track |
| Saves 0-10% on total interest | Marginal benefit | May not be worth fees and hassle—consider aggressive payoff instead |
| Costs more overall | Consolidation hurts you | Don't consolidate—keep current debts and pay extra when possible |
Meaning: Strong candidate for consolidation
Action: Proceed if you won't accumulate new debt
Meaning: Moderate benefit
Action: Consider consolidation, especially if simplification helps you stay on track
Meaning: Marginal benefit
Action: May not be worth fees and hassle—consider aggressive payoff instead
Meaning: Consolidation hurts you
Action: Don't consolidate—keep current debts and pay extra when possible
Note: A lower monthly payment that extends your term can actually cost you more total. Always compare total cost, not just monthly payment.
About Debt Consolidation Calculator
Formula
Weighted Average Rate = Σ(Balance × Rate) / Total Balance Your current blended rate. If the consolidation loan rate is significantly lower than this number, consolidation likely saves money. Factor in origination fees (1-8% of loan amount) when comparing.
Current Standards: Personal loan rates in 2026: Excellent credit (750+) 7-10%, Good credit (670-749) 10-15%, Fair credit (580-669) 15-25%. Balance transfer cards offer 0% for 15-21 months with 3-5% transfer fee.
Frequently Asked Questions
When does debt consolidation make sense?
Consolidation makes sense when: your consolidation rate is significantly lower than your current weighted average rate, you won't extend the term so much that you pay more total interest, you have a plan to avoid accumulating new debt, and the simplification of one payment helps you stay organized. If you qualify for a 9% personal loan to replace 20%+ credit card debt, consolidation likely saves thousands.
What are the different ways to consolidate debt?
Personal loans offer fixed rates and terms (typically 2-7 years). Balance transfer credit cards offer 0% intro APR for 15-21 months but require paying off before the promotional period ends. Home equity loans/HELOCs use your home as collateral for lower rates but risk foreclosure. Debt management plans through credit counselors negotiate lower rates without a new loan. Each option has different qualification requirements and trade-offs.
What's the catch with debt consolidation?
Several catches: You might extend your payoff timeline, paying more total interest even at a lower rate. Origination fees (1-8%) add to your debt. If you keep using credit cards after consolidating, you'll end up deeper in debt than before. And if you use home equity, you're putting your house at risk for what was unsecured debt. Consolidation isn't a solution—it's a tool that only helps if you change spending habits.
Should I consolidate all my debts or just some?
Generally, consolidate high-interest debt (credit cards, payday loans) but leave low-interest debt (federal student loans at 4-5%, car loans under 6%) alone. You might lose benefits by consolidating student loans (income-driven repayment, forgiveness programs). The sweet spot: consolidate debts above your consolidation loan rate, keep debts below it. Use this calculator to compare scenarios.
How do I get the best consolidation loan rate?
Your credit score is the biggest factor—improve it before applying if possible (pay down balances, dispute errors). Get pre-qualified with multiple lenders (SoFi, LightStream, Prosper, Marcus, and your local credit union) using soft pulls that don't hurt your credit. Compare APRs including origination fees, not just interest rates. Loan term matters too—shorter terms have lower rates but higher payments.