Debt Consolidation Calculator

Category: Finance
- April 22, 2025
| |

Evaluate whether consolidating your debts makes financial sense. This calculator compares your current debts with a potential consolidation loan to show potential savings and changes to your payoff timeline.

Current Debts

1
$
%
$
2
$
%
$

Consolidation Loan Details

%
%
$

Display Options

About Debt Consolidation

Debt consolidation is the process of combining multiple debts into a single loan, usually with a lower interest rate or monthly payment. This can simplify your finances and potentially save you money.

When Consolidation Makes Sense
  • When you can secure a lower interest rate than your current debts
  • When you're struggling to keep track of multiple payment due dates
  • When you want to lower your monthly payment (though this may extend repayment time)
  • When you're able to pay off high-interest debt faster
When Consolidation May Not Be Ideal
  • When the fees and costs outweigh the interest savings
  • When consolidation extends your repayment period significantly
  • When your credit score has declined, potentially resulting in higher rates
  • When you haven't addressed the spending habits that led to debt
Types of Debt Consolidation
  • Personal Loans: Unsecured loans with fixed interest rates and terms
  • Balance Transfer Credit Cards: Often come with 0% intro APRs for 12-18 months
  • Home Equity Loans/Lines of Credit: Use your home as collateral, often with lower rates
  • 401(k) Loans: Borrowing from your retirement savings (comes with risks)
  • Debt Management Plans: Structured payment plans through credit counseling agencies

Formula Used in This Calculator

Loan Payment Formula:
\( PMT = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1} \)
Where:
- PMT = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate / 12)
- n = Total number of payments (loan term in months)

What Is the Debt Consolidation Calculator?

The Debt Consolidation Calculator helps you decide if combining your debts into one loan is a financially sound decision. It compares your existing debts—like credit cards, personal loans, and other balances—with a potential consolidation loan to see how much money and time you might save.

Whether you're using it as a loan repayment guide or a debt payoff strategy, this tool offers clear numbers to support your decisions.

How This Calculator Helps You

This calculator provides a simple way to compare your current debt payments with a single consolidated loan. It can help you:

How to Use the Calculator

  1. Enter your current debts. Include the balance, interest rate, and monthly payment for each.
  2. Click “+ Add Debt” to include more loans or credit cards.
  3. Input details for a potential consolidation loan: interest rate, loan term (in months or years), and any fees.
  4. Customize display settings like decimal precision or whether to show the amortization schedule or chart.
  5. Click “Calculate Consolidation” to view your results.

Understanding Your Results

The results section gives you a complete side-by-side comparison:

  • Current Debts: Total balances, monthly payments, and payoff estimates
  • Consolidated Loan: Estimated monthly payment, interest paid, and total cost
  • Potential Savings: How much you could save monthly and overall

You’ll also see a loan repayment schedule and a comparison chart showing how your balance decreases over time—great for visual learners.

When Is Debt Consolidation a Good Idea?

Consolidating debt could benefit you if:

  • You qualify for a lower interest rate
  • You want to simplify your payments into one loan
  • You’re looking to reduce monthly payments without extending your debt forever
  • You have a clear plan to avoid new debt

When to Be Cautious

Consolidation may not help if:

  • The fees are too high and cancel out the savings
  • Your new loan term is much longer, increasing total interest
  • Your credit score results in high consolidation rates
  • You continue using credit cards without changing spending habits

Frequently Asked Questions

  • Does this calculator include fees? Yes, you can add origination and other fees to get a more realistic estimate.
  • Can I add multiple types of debt? Absolutely. Add credit cards, personal loans, and more—each with its own details.
  • What’s an amortization schedule? It’s a month-by-month breakdown of how much of your payment goes to interest and how much to the loan principal.
  • Is this a loan payment tool? Yes! It helps estimate monthly payments and payoff timelines just like a personal loan calculator or debt repayment tool would.
  • Can I use this as a personal loan estimate? Yes, by entering only one loan in the consolidation section, you can use it as a loan estimate tool.

Make Informed Financial Decisions

Whether you're exploring debt consolidation, seeking a personal loan estimate, or need a monthly loan estimator, this calculator is a practical resource. It gives you the knowledge to make confident financial choices and better understand the impact of interest, time, and fees on your debt.