About the Debt Consolidation Calculator
Consolidating rolls several high-rate debts into one fixed loan, usually at a lower rate and with a single monthly payment. But stretching the balance over a longer term can raise total interest even at a lower rate — so this calculator compares the total interest of both paths, not just the payment.
How it’s calculated
Current path: interest is simulated at your current average APR and payment. Consolidation: the balance is amortized at the new loan's rate and term. The difference in total interest is your saving (or extra cost).
Example calculation
Consolidating $15,000 at a 21% blended rate into an 11% loan over 4 years can save thousands in interest while lowering the monthly payment.
Frequently asked questions
Does consolidation always save money?
Not always. A lower rate helps, but a longer term can mean more total interest. Compare total interest — and watch for origination fees on the new loan.
Consolidation loan or balance transfer?
A balance transfer suits smaller balances you can clear during a 0% intro period. A consolidation loan suits larger balances you'll repay over a few years at a fixed rate.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.