Debt Consolidation Calculator

Consolidating multiple debts can simplify your payments and potentially save you money on interest. Use this calculator to see your potential savings.

Your Debts

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Consolidation Loan Settings

3%25%
12 months60 months (5 years)

Current Situation

Total Debt:$16,000
Monthly Payment:$550
Est. Interest:$0

If Consolidated

Monthly Payment:$324.42
Total Interest:$3,465.34
Total Cost:$19,465.34

Potential Savings

Monthly Savings:$225.58
Interest Savings:$-3,465.34

Adjust the consolidation rate and term to see different scenarios

How Debt Consolidation Works

What is Debt Consolidation?

Debt consolidation combines multiple debts (credit cards, personal loans, etc.) into a single loan. Instead of making multiple payments to different creditors, you make one payment to a consolidation lender.

Potential Benefits

  • • Simplified single monthly payment
  • • Lower overall interest rate
  • • Faster payoff timeline
  • • Improved credit management

Types of Consolidation

  • • Balance transfer credit card
  • • Personal consolidation loan
  • • Home equity line of credit
  • • Debt management plan

When to Consider

  • • Managing 3+ accounts with different payments
  • • High combined interest rates
  • • Struggling to track multiple payments
  • • Good enough credit for better rates

Important Considerations

While debt consolidation can be beneficial, it's important to understand the full picture:

  • Loan terms: A longer consolidation loan term might lower your monthly payment but increase total interest paid
  • Credit impact: Applying for new credit may temporarily lower your credit score
  • Fees: Some consolidation loans include origination fees or other costs
  • Spending habits: Consolidation doesn't solve overspending—you must address the root cause
  • Interest rates: Your actual consolidation rate depends on your credit score and financial profile

Important Disclaimer

This calculator provides estimates for educational purposes only. Actual consolidation results will vary based on your credit score, the consolidation method chosen, current interest rates, and lender policies. Consolidation loan rates shown are examples—your actual rate will depend on your creditworthiness and lender. We strongly recommend consulting with a qualified financial advisor before pursuing debt consolidation. This calculator is a starting point for understanding your potential savings, not professional financial advice.

Ready to Explore More Options?

Debt consolidation is one way to manage debt. Compare all your options to find the best solution for your situation.