Business Debt Consolidation Calculator
Find out if rolling your business debts into one loan will actually save you money.
What Is the Business Debt Consolidation Calculator?
The idea is simple: take your MCAs, equipment loans, credit card balances, and credit lines, and combine them into one loan with one payment and a lower rate. The reality is more complicated. Enter up to three existing debts with their balances, rates, and payments, then model a consolidation loan. You'll see the new monthly payment, monthly savings, total interest savings, and payoff date. Here's the catch most people miss: consolidation can lower your monthly bill but increase total interest if the new loan stretches your repayment timeline. This calculator shows you both sides -- the monthly relief and the total cost -- so you don't trade a short-term win for a long-term loss.
How to Use This Calculator
Enter Existing Debts
For each debt, put in the current balance, interest rate, and what you're paying monthly. Leave any unused fields at zero.
Set Consolidation Loan Terms
Put in the rate and term for the consolidation loan you're considering. Use real pre-qualification numbers if you have them, or estimate based on your credit.
Compare Monthly and Total Savings
Compare your new payment against what you're paying now across all debts. Then check total interest -- a longer term can wipe out your monthly savings in extra interest over time.
Evaluate Cash Flow Impact
A lower monthly payment means more cash for operations, marketing, or reserves. Figure out exactly where that freed-up money goes -- it should be working, not sitting idle.
Key Concepts
Weighted Average Rate
Your blended rate across all debts, weighted by how much you owe on each. Consolidation only works if the new rate is well below this number.
Term Extension Risk
Going from 24 months to 60 months drops your monthly bill, but you might pay more interest total even at a lower rate. Always look at the full cost, not just the monthly number.
Secured vs. Unsecured
Secured loans backed by equipment, real estate, or receivables get you lower rates. The tradeoff: default and you lose those assets.
Origination and Prepayment Fees
Watch for 1-6% origination fees and prepayment penalties baked into consolidation loans. These eat into your savings if you don't account for them upfront.
SBA 7(a) Consolidation
SBA 7(a) loans can refinance eligible business debt at Prime + 2-3%. The paperwork takes longer, but the rate difference against a 20%+ MCA is massive.
Expert Insights
Consolidation pays off when your blended rate is above 20% and you can get a consolidation loan under 15%. Smaller spreads usually aren't worth the origination fees and paperwork.
Don't consolidate MCAs into a term loan until you've confirmed the MCA contract allows payoff at the current balance, not the full purchased amount. Otherwise you're paying the full MCA cost plus new interest on top.
Once you consolidate, close or cut the credit lines you paid off. The #1 reason consolidation fails: business owners pay off their lines, then immediately re-draw them, ending up with double the debt.
Frequently Asked Questions
This calculator provides estimates for educational purposes only. Actual results depend on your specific business financials, lender terms, and market conditions. Consult a qualified financial advisor before making major business financing decisions.
Run These Numbers Too
Business Loan Payment Calculator
See your monthly payment, total interest, and what a business term loan will really cost you.
SBA Loan Calculator
Run the numbers on SBA 7(a), 504, and microloan programs before you apply.
Business Debt-to-Income Ratio Calculator
See where your business stands with lenders before you apply for anything.
Debt Payoff Timeline Calculator
Pick a date to be debt-free and find out what it takes to get there.
Ready to Consolidate Business Debt?
Compare top business consolidation lenders and find the best rate for your situation.
Compare Consolidation Lenders