Debt Consolidation Calculator

What debt consolidation means

Debt consolidation combines several debts into one new loan. The new loan pays off the existing balances, and you repay the consolidation loan over a new term. It can lower the monthly payment or simplify payments, but it can also increase total interest if the term is longer or the fees are high.

This calculator compares your current debts with a consolidation loan using monthly payment, payoff time, total payments, total interest, loan fees, and total cost. It does not calculate the real APR after fees.

How to use this calculator

1. Enter the balance, monthly payment, and APR for each current debt.
2. Enter the consolidation loan amount, interest rate, and term.
3. Choose whether the loan fee is a percentage or a fixed amount.
4. Click Calculate to compare both paths.

The consolidation loan amount must cover the total debt.

How the comparison works

For the current debts, the calculator uses the minimum payments and the debt avalanche method. The consolidation loan uses a standard fixed-rate amortization:

M = P × r × (1 + r)^n / ((1 + r)^n − 1)

P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.

The loan fee is:

fee = loan amount × fee percentage

or the fixed fee amount you enter. Total cost is the consolidation loan's total interest plus the fee.

What the results include

• Current monthly payment: the sum of your current minimum payments.
• Current payoff time and total interest: based on the debt avalanche plan.
• Consolidation loan monthly payment: the required payment for the new loan.
• Consolidation total payments and interest: over the new term.
• Loan fee and total cost: interest plus the fee.
• Differences: monthly payment difference and interest-plus-fee difference.

Frequently asked questions

Does this calculator include the real APR?

No. This version shows the interest rate and the loan fee separately. The real APR would include the fee and other closing costs.

Is a lower monthly payment always better?

Not necessarily. A longer term or a higher fee can increase total cost even if the monthly payment is lower. Compare total interest and total cost.

What if the consolidation loan is larger than my debt?

The calculator requires the loan to cover the total debt. Borrowing more than the debt may add unnecessary interest; confirm the loan amount with your lender.

Does it include credit card or balance transfer fees?

No. Only the loan fee entered in the form is included in the comparison.

Source

Reference: Consumer Financial Protection Bureau — Personal Loans.

Disclaimer

This calculator is for informational and planning purposes only. It is not financial advice or a guarantee of loan terms. Confirm the loan amount, fees, APR, and repayment terms with a qualified lender before consolidating.