Debt Consolidation Calculator
See whether rolling your credit cards and other debts into one loan would actually save money. List your debts with their balances, rates, and what you pay each month, then enter the consolidation loan’s APR, term, and origination fee.
The calculator compares the two paths side by side — monthly payment, total interest and fees, and how long until you’re debt-free — so you can spot when a lower payment really means paying more over a longer term.
Calculator
Debts you want to consolidate
Consolidation loan
Keep paying as you are
$390/mo
- Total balance
- $12,500
- Average APR
- 24.63%
- Debt-free in
- 4y 10m
- Total interest
- $8,191
Consolidate into one loan
$346/mo
- Loan amount
- $13,158
- Origination fee
- $658
- Debt-free in
- 4y
- Interest + fee
- $4,132
Consolidating saves about $4,059 in interest and fees, and lowers your monthly payment by $44.
Assumes you keep making the same payments on your current debts until they’re paid off, and that the consolidation loan pays them off in full. Consolidation only helps if you avoid running the cards back up.
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Calculation Formulas
Interest accrues monthly on each balance; the slowest debt sets your debt-free date.
When the fee is deducted from proceeds, you borrow enough to net the full payoff amount.
Example:
$12,500 ÷ 0.95 = $13,158.
Standard amortization; r = APR ÷ 12.
Key Figures
| Figure | Value | Description |
|---|---|---|
| Typical origination fees | 0%–12% | Varies by lender and credit. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: October 2026
- Standard amortization
Uses the same payoff and amortization engine as our debt payoff and personal loan calculators.
- Behavioral caveat
Consolidation only saves money if the paid-off cards aren’t used to build new balances.
How to Use This Calculator
- Enter each debt’s balance, APR, and the monthly payment you make now.
- Enter the consolidation loan’s APR, term, and origination fee.
- Choose whether the fee comes out of the loan proceeds.
- Compare the payment, total cost, and payoff date of each option.
Frequently Asked Questions
Does debt consolidation save money?
It does when the new loan’s APR is meaningfully lower than your debts’ average rate and you don’t stretch the payoff much longer. In the default example, $12,500 of card debt averaging about 25% APR costs $8,191 in interest at current payments; a 4-year loan at 12% with a 5% fee costs about $4,132 in interest and fees — a $4,059 saving.
How does the origination fee affect consolidation?
Most lenders deduct the fee from the loan, so you must borrow more to pay off the same debts. With a 5% fee, paying off $12,500 takes a loan of about $13,158. The fee is part of the APR, so compare offers by APR.
Will a lower monthly payment always save money?
No. A lower payment often comes from a longer term, which can mean more total interest even at a lower rate. Compare total cost, not just the payment.
What credit score do I need to consolidate debt?
Many online lenders accept scores in the 600s, but the rate depends heavily on credit. A consolidation loan only helps if its APR is lower than what you pay now, which usually requires good credit.
Guides to go with this calculator
How to Calculate Debt-to-Income Ratio (DTI)
Lenders use your debt-to-income ratio to decide how much you can borrow. Here’s exactly what goes into it, how to calculate it in two minutes, and the limits for conventional, FHA, and VA loans.
Debt Snowball vs. Avalanche: Which Is Faster?
Both methods use the same money and the same discipline — they just differ on which debt you attack first. One saves the most interest; the other keeps you motivated. Here’s how to choose.
How to Pay Off Credit Card Debt Fast
Americans carry $1.25 trillion in credit card debt at over 20% interest — and paying the minimum keeps you there for years. Here’s a concrete plan to get out faster.
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