Debt Consolidation Calculator
Compare a single consolidation loan against what you pay now across your debts.
How to use the Debt Consolidation Calculator
- Enter the total balance of the debts you want to combine.
- Enter what you currently pay across them each month.
- Enter the rate and term of the new consolidation loan.
- See the new payment, your monthly change and the total interest.
New payment = P × r × (1+r)^n / ((1+r)^n − 1), compared with your current payment
About the Debt Consolidation Calculator
Debt consolidation rolls several balances — cards, loans, overdrafts — into a single new loan with one payment and, ideally, a lower rate. This calculator prices that new loan and lines its monthly payment up against what you currently pay across all your debts, showing whether you would save each month and what the whole thing costs in interest. One clear payment instead of several is easier to manage, and a lower rate genuinely reduces cost — but only if the term does not undo the saving.
That is the catch the calculator is built to expose. A consolidation loan often lowers the monthly payment mainly by stretching repayment over a longer period, which can quietly raise the total interest even as the monthly figure falls. By showing the new total cost and total interest alongside the monthly change, it lets you tell a genuine saving from a payment that merely looks smaller.
It compares your current payment against the new loan; it assumes you actually close the old debts and do not run the cards back up, which is where consolidation most often goes wrong. For a single card's payoff use the credit card payoff calculator, and to check your borrowing health the debt-to-income calculator.
Frequently asked questions
Does consolidating always save money?
Not necessarily. It can lower your monthly payment while increasing total interest if the new term is longer. The calculator shows the total cost so you can see whether it is a real saving or just a smaller payment.
What rate should I enter for the new loan?
Use the rate you have been offered on the consolidation loan. Consolidation only helps if that rate is lower than the blended rate of your current debts, or if the simpler single payment is worth it to you.
What is the biggest risk?
Running the old debts back up after clearing them, leaving you with the consolidation loan plus new balances. The maths only works if you close the old accounts and avoid new debt.