Debt Consolidation Calculator
Compare your current payments to a single consolidated loan and see how much you could save each month.
What Is a Debt Consolidation Calculator?
A debt consolidation calculator helps you compare your current scattered debts against a single consolidated loan. By entering your total debt, current average interest rate, and the new consolidation rate, you can see exactly how much you would save on monthly payments and total interest. This tool makes it easy to evaluate whether consolidation is the right financial move for your situation.
How to Use This Calculator
Enter Your Total Debt
Add up all the debts you are considering consolidating: credit cards, personal loans, medical debt, and other unsecured balances.
Input Current Interest Rate
Enter the weighted average interest rate across all your current debts. Focus on the highest-rate debts since those benefit most from consolidation.
Set the Consolidation Rate
Enter the interest rate offered by the consolidation loan. Your actual rate depends on credit score, income, and lender. Pre-qualify with several lenders to get accurate numbers.
Choose Your Loan Term
Select how long you want to repay the consolidation loan. Shorter terms mean higher payments but less total interest. Longer terms lower the monthly bill but cost more overall.
Key Concepts
Weighted Average Rate
The average interest rate across all debts, weighted by balance. A $10,000 card at 24% and a $5,000 loan at 8% gives a weighted average of about 18.7%.
Total Cost of Debt
The sum of your original balance plus all interest paid over the life of the debt. Consolidation aims to reduce this total.
Secured vs Unsecured
Unsecured consolidation loans have no collateral. Secured options (like home equity) may offer lower rates but put your assets at risk.
Origination Fees
Many consolidation loans charge 1-8% upfront. Factor this into your savings calculation. A low rate with a high fee may not be the bargain it appears.
Expert Insights
Consolidation only works if you stop adding new debt. Without changing spending habits, you may end up with both the consolidation loan and new credit card balances.
Compare at least 3-5 lenders before committing. Rates can vary by 5-10 percentage points for the same borrower depending on the lender.
If your credit score is below 670, consider a debt management plan through a nonprofit credit counseling agency instead of a consolidation loan. The rates may be comparable without the hard credit pull.
Frequently Asked Questions
This calculator provides estimates for educational purposes only. Actual results depend on your specific financial situation, lender terms, and market conditions. Consult a qualified financial advisor before making major financial decisions.
Run These Numbers Too
Debt Payoff Calculator
See exactly how long it will take to become debt-free and how much interest you can save with extra payments.
Debt-to-Income Ratio Calculator
Calculate your DTI ratio to understand your borrowing capacity and financial health.
Personal Loan Calculator
Estimate your monthly payment, total interest, and total cost for a personal loan.
Ready to Consolidate Your Debt?
Compare top consolidation loan offers and find the lowest rate for your credit profile.
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Did You Know?
The average credit card interest rate hit 22.76% in 2025 — the highest since tracking began in the early 1990s.
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