Debt Consolidation Calculator
A consolidation loan replaces several debts with one payment, ideally at a lower rate. It saves money only if the new rate, the fee and the term together cost less than carrying on as you are.
Enter your figures below. Results update as you type.
Consolidating saves$4,916.46New payment $678.10 a month
- Change in monthly payment
- -$121.90
- Origination fee
- $750.00
- Interest and fee on the new loan
- $7,548.62
- Interest if you carry on as now
- $12,465.08
Consolidation only helps if the cards stay paid off afterwards. Running the balances back up leaves you with both the loan and the new debt.
Carry on as now vs. consolidate
Current debts
$800.00Monthly payment
3 yr 11 moTime to clear
$12,465.08Interest to pay
Consolidation loan
$678.10Monthly payment
4 yr 0 moLoan term
$7,548.62Interest and fee
How the Debt Consolidation calculation works
Saving = interest on current debts - (interest + fee on the new loan)
$25,000 of debt at 22%, paid at $800 a month, takes 3 years 11 months and $12,465 in interest. A 48-month loan at 12% with a 3% fee costs $678.10 a month and $7,549 in interest and fees, saving about $4,916.
Frequently asked questions
Does debt consolidation save money?
It does when the new loan's rate is clearly lower and the term is not much longer. A lower payment achieved only by stretching the term can cost more in total.
Does debt consolidation hurt your credit score?
Applying causes a small, temporary dip from the credit check. Paying off card balances with the loan usually lowers your credit utilization, which tends to help your score over time.
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