Debt Consolidation Calculator
See if rolling your debts into one loan lowers your monthly payment and interest — enter each balance and rate, then a new loan rate and term to compare.
Comparison assumes the same 3-year term. Consolidating 3 debts at 12.0% instead of your current 21.6% average saves about $2,745.39 in interest and lowers the monthly payment by $76.26. Actual offers depend on your credit and lender fees — this is an estimate, not financial advice.
This is an estimate for general information only and is not financial, tax or investment advice. Figures may differ from a lender or advisor.
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This debt consolidation calculator shows whether combining several debts into a single loan would lower your interest and monthly payment. Enter each debt's balance and interest rate, then the rate and term of the consolidation loan you're considering, and it compares the two side by side.
Consolidation replaces several balances — often high-interest credit cards — with one fixed-rate personal loan. The win comes from a lower rate: paying the same total balance at a lower APR over the same term means less interest and, usually, a smaller monthly payment. The calculator works out your current balance-weighted average rate and shows exactly how much interest a lower rate would save.
How to use it
- 1Enter the balance and APR of each debt you want to consolidate (add as many as you need).
- 2Enter the interest rate and term of the new consolidation loan.
- 3Read the new monthly payment, total interest and your current average rate.
- 4Check the interest saved (or added) versus keeping your debts at today's average rate.
Frequently asked questions
What is debt consolidation?+
Debt consolidation combines multiple debts into a single loan with one monthly payment. It's most useful when the new loan's rate is lower than the average rate on your existing debts — commonly used to replace high-interest credit cards with a fixed-rate personal loan.
Does consolidating save money?+
Only if the new rate is lower than your current balance-weighted average rate. At a lower rate over the same term you pay less interest and usually a smaller monthly payment. Watch for origination fees and don't stretch the term so long that a lower payment ends up costing more interest overall.
How is the current average rate calculated?+
It's a balance-weighted average: each debt's rate is weighted by its balance, so a large high-rate balance moves the average more than a small one. That's the fair rate to compare a single consolidation loan against.
Will consolidating hurt my credit?+
Applying may cause a small temporary dip from the hard inquiry, but paying down revolving credit-card balances can help your utilization over time. Many lenders let you check your rate with a soft pull that doesn't affect your score. This tool is an estimate, not financial advice.
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