Debt Consolidation Calculator

See how much you could save by consolidating multiple debts. Free debt consolidation calculator.

A debt consolidation calculator estimates the monthly payment and total interest on a single loan used to pay off several smaller debts. The point of consolidation is to replace multiple high-rate balances (typically credit cards at 20% or more) with one fixed-rate installment loan at a lower rate, so you pay less interest and have one predictable monthly payment. This calculator applies the standard amortization formula to the consolidation loan so you can see the new payment and total cost side by side with what you pay now.

Use it to decide whether consolidation actually saves money: a lower rate helps, but stretching a short balance over a longer term can increase total interest even as it lowers the monthly payment. Try the same balance at 24, 36, and 60 months, and compare the total interest to what your cards would charge. The break-even is real only when the new total interest is lower than the old. Everything runs in your browser.

loan

Result

311.38

Breakdown

Total Paid
18,683
Total Interest
3,683

About Debt Consolidation Calculator

What is debt consolidation calculator?

A debt consolidation calculator estimates the monthly payment and total interest on a single loan used to pay off several smaller debts. The point of consolidation is to replace multiple high-rate balances (typically credit cards at 20% or more) with one fixed-rate installment loan at a lower rate, so you pay less interest and have one predictable monthly payment. This calculator applies the standard amortization formula to the consolidation loan so you can see the new payment and total cost side by side with what you pay now. Use it to decide whether consolidation actually saves money: a lower rate helps, but stretching a short balance over a longer term can increase total interest even as it lowers the monthly payment. Try the same balance at 24, 36, and 60 months, and compare the total interest to what your cards would charge. The break-even is real only when the new total interest is lower than the old. Everything runs in your browser.

How to use this calculator

  1. Enter your loan amount.
  2. Enter your interest rate.
  3. Enter your loan term.
  4. Click the "Calculate" button.
  5. View your result instantly — the main result is displayed prominently at the top with a detailed breakdown below it.

When to use this calculator

  • Comparing a consolidation loan payment against current minimum card payments
  • Seeing whether a lower rate offsets a longer term on total interest
  • Deciding between a personal loan and a 0% balance-transfer card
  • Projecting total interest savings from consolidating card debt
  • Budgeting a single fixed payment instead of multiple variable ones

How the calculation works

The consolidation loan amortizes like any installment loan: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the total debt consolidated, r is the monthly rate (new APR / 12), and n is the term in months. Total interest on the new loan = (M x n) - P. Compare that against the interest the old debts would charge. For example, consolidating $15,000 of credit card debt at 22% into a 9% personal loan over 60 months: r = 0.0075, n = 60, M = 15,000 x [0.0075 x (1.0075)^60] / [(1.0075)^60 - 1] ~= $311 per month, total interest ~= $3,660. Left on the card making similar payments, the same balance could cost over $8,000 in interest, so consolidation saves roughly $4,300 if the term and payment are comparable.

Frequently Asked Questions

How is loan interest calculated?▼
Most loans use amortized interest where each payment covers accrued interest plus a portion of principal. The formula is M = P[r(1+r)^n]/[(1+r)^n-1].
What is APR vs interest rate?▼
The interest rate is the cost of borrowing the principal. APR includes the interest rate plus fees, giving the true yearly cost of the loan.

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