The Debt Consolidation Calculator can determine whether it is financially rewarding to consolidate debts by comparing the APR (Annual Percentage Rate) of the combined debts with that of the consolidation loan. APR is the fee-adjusted financial cost of a loan, providing a more accurate basis for loan comparisons. The calculated results will also display comparisons such as the monthly payment, payoff length, and total interest.
• Section 1: Enter your existing credit cards and loans with their current balances, payments, and APRs.
• Section 2: Enter your proposed consolidation loan terms (interest rate, duration, and origination fees) to calculate your net savings.
Enter details for all high-interest credit cards and loans you wish to consolidate.
| # | Debt name | Remaining balance ($) | Monthly payment ($) | Interest rate (%) | |
|---|---|---|---|---|---|
| 1 | $ | $ | % | ||
| 2 | $ | $ | % | ||
| 3 | $ | $ | % | ||
| 4 | $ | $ | % | ||
| 5 | $ | $ | % | ||
| 6 | $ | $ | % |
Enter loan terms, interest rate, and origination fees.
Consolidating lowers your effective APR from 18.89% to 13.25% (fee-adjusted), saving $108.30/month and $4,554.53 overall.
Compare existing combined debts against the single proposed consolidation loan.
| Comparison Metric | Existing Combined Debts | Consolidation Loan | Difference / Savings |
|---|---|---|---|
| Monthly Payment | $630.00 | $521.70 | -$108.30 / mo |
| Effective APR | 18.89% | 13.25% (Fee-adjusted) | -5.64% |
| Total Interest Paid | $13,056.42 | $7,301.89 | -$5,754.53 |
| Upfront Loan Fees | $0.00 | $1,200.00 | +$1,200.00 |
| Total Cost (Principal + Int + Fees) | $37,056.42 | $32,501.89 | Save $4,554.53 |
| Payoff Length | 5 yrs, 5 mos | 5 yrs, 0 mos | 5 months faster |
Debt consolidation merges multiple high-interest credit lines into a single installment loan with fixed monthly payments. Evaluating the fee-adjusted APR and total lifetime interest ensures refinancing saves money rather than extending debt.
Consolidation loans often charge upfront origination fees between 1% and 8%. Always compare the fee-adjusted APR rather than the nominal interest rate to verify that total finance charges are genuinely lower.
Extending a loan term reduces your monthly payment, improving immediate cash flow. However, stretching repayment over too many years can result in paying more total interest despite a lower interest rate.
Paying off credit card balances with a personal installment loan drastically lowers revolving credit utilization, often generating a substantial boost to your FICO credit score within 30 to 60 days.
Calculate debt avalanche strategies with extra monthly and annual contributions.
Optimize repayment strategies across multiple revolving credit card balances.
Estimate personal consolidation loan monthly payments and interest costs.
Calculate fixed monthly loan payments and full amortization schedules.