Debt Consolidation Calculator

Compare your current multiple debts versus a single consolidated loan. See potential savings and determine if debt consolidation is right for you.

$
%
%
years

Quick Facts

Avg Credit Card APR
~21-24%
As of 2024
Personal Loan APR
~8-15%
Good credit required
Balance Transfer
0% for 12-21 mo
Then 15-25% APR
Typical Savings
20-50%
In total interest paid

Your Results

Calculated
Monthly Payment
$0
Consolidated loan
Total Interest
$0
Over loan term
Potential Savings
$0
vs. current debts

Current Debts

Total Debt $0
Average Rate 0%
Est. Total Interest $0
Total Cost $0

Consolidated Loan

Loan Amount $0
Interest Rate 0%
Total Interest $0
Total Cost $0

Key Takeaways

  • Debt consolidation combines multiple debts into a single loan with one monthly payment
  • Lower interest rates can save thousands of dollars in interest over time
  • Best for those with good credit who can qualify for lower rates
  • Consider balance transfer cards for smaller debts with 0% intro APR
  • Avoid extending loan terms too long - it may increase total interest paid

About the Debt Consolidation Calculator

The Debt Consolidation Calculator is a comprehensive online tool designed to help you compare multiple debts versus a single consolidated loan. Whether you're managing credit cards, personal loans, or other debts, this free calculator helps you understand the potential savings from consolidation.

How to Use This Calculator

  1. Enter your total debt amount - the sum of all debts you want to consolidate
  2. Input your current average interest rate across all debts
  3. Enter the consolidation loan interest rate you've been offered
  4. Set your desired loan term in years
  5. Click "Calculate" to see your potential savings

Understanding the Calculation

Formula: This calculator compares total interest paid under your current debts versus a consolidated loan using the standard amortization formula:

Monthly Payment = P * [r(1+r)^n] / [(1+r)^n - 1]

Where P is principal, r is monthly interest rate, and n is number of payments. The calculator estimates your current interest costs and compares them to the consolidated loan to show potential savings.

When Does Debt Consolidation Make Sense?

  • Your new interest rate is significantly lower than your current average rate
  • You have good credit to qualify for competitive rates
  • You want to simplify multiple payments into one
  • You can commit to not accumulating new debt
  • The total cost (including fees) is less than your current path

Frequently Asked Questions

Yes, this calculator is completely free to use with no hidden charges or registration requirements.

Initially, you may see a small dip due to the hard credit inquiry. However, making on-time payments and reducing credit utilization can improve your score over time.

Most unsecured debts including credit cards, personal loans, medical bills, and some student loans can be consolidated. Secured debts like mortgages or auto loans typically cannot.

While longer terms mean lower monthly payments, you'll pay more interest overall. Choose the shortest term you can comfortably afford to minimize total costs.

Yes! Click the "Copy Widget Code" button above to get the embed code for your website.

Additional Resources

For more finance calculators and tools, explore our complete collection at Calculator Cloud. We offer hundreds of free calculators across finance, health, math, science, and more.