What Is the Debt Consolidation Calculator?
A debt consolidation calculator compares the cost of keeping several debts separate versus rolling them into one loan at a single interest rate. Consolidation can simplify payments and lower your rate, but the term length determines whether you actually save money.
How to use this calculator
Type your numbers into the fields above. The results change the moment you edit any input, so you can try one scenario after another and see exactly what moves. Most calculators show a short summary of the key figures, a line-by-line breakdown underneath, and — where it applies — a year-by-year schedule you can export to a spreadsheet. Everything runs in your browser; nothing is stored or sent anywhere. Treat the output as a planning estimate, not as final word on a real decision.
The Formula
The calculator computes the monthly payment and total interest for your current weighted APR over a reference term, then does the same for the consolidation loan at its rate and term. The difference in total interest is your potential saving.
Worked Example
Consolidating $20,000 of debt from a 19% weighted APR to an 11% loan over 5 years drops the monthly payment from about $518 to about $434 and cuts total interest from roughly $11,100 to about $6,060 — a saving near $5,000.
Tips for the Most Accurate Estimate
- Compare total interest, not just the monthly payment.
- Avoid extending the term so long that interest savings disappear.
- Consolidation works best when your new rate is clearly lower.
- Stop using the old cards after consolidating or debt grows again.
- Check for origination fees that reduce the net benefit.
Frequently Asked Questions
Q: Will consolidation hurt my credit?
Temporarily, a new inquiry and account can dip your score, but on-time payments and lower utilization usually help over time.
Q: Is a lower payment always better?
Not necessarily. A lower payment from a longer term can cost more in total interest. Always check the total cost.
Q: What rate should I target?
Aim below your current weighted APR by several points; secured loans or strong credit typically qualify for the best rates.