How to use the Debt Consolidation Calculator
This tool compares your current debts with a single consolidation loan so you can see the payment and interest difference.
Open the Debt Consolidation Calculator →
What you need to enter
- Total debt ($)
- Current average APR (%)
- Current total monthly payment ($)
- New loan rate (%)
- New loan term (years)
The formula
It computes the interest on current debts at their average rate and payment, and on the new loan using the standard loan formula.
Worked example
Using the default values in the calculator:
- Total debt ($): 15000
- Current average APR (%): 21
- Current total monthly payment ($): 450
- New loan rate (%): 11
- New loan term (years): 4
| New monthly payment | $387.68 |
| Current interest to pay | $7,708.46 |
| Consolidated interest | $3,608.78 |
| Interest saved | $4,099.69 |
Tips for better results
- Check origination fees and a lower rate over a longer term can still cost more.
- Close or avoid refilling the cleared accounts.
Common mistakes to avoid
- Looking only at the lower monthly payment.
- Ignoring balance-transfer fees.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.