Debt consolidation calculator
Compare paying off several debts as you are now with rolling them into one new loan.
Results
New monthly payment
$434.20
This is your single payment each month if you combine your 3 debts into one loan at 11% for 4 years.
- Current monthly payments
- $570.00
- Interest saved
- $1,199.70After the new loan's fees; negative means it costs more
- Debt-free at your current payments in
- 3 years 8 months
- Debt-free with new loan in
- 4 years
- New loan amount
- $16,800.00Total of balances plus fees
- Interest on current debts
- $5,541.53
- Interest on new loan
- $4,041.83
Your debts now versus one new loan
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How it works
First we follow each of your debts month by month at its own rate and payment until it is cleared, adding up the interest along the way. Then we roll all the balances, plus any fees, into one new loan and work out its level monthly payment over the term you choose. Comparing the two shows whether one loan lowers your payment, your total interest, or both.
Formula
- Each debt, each month: interest = balance × rate ÷ 12 ÷ 100; balance falls by payment − interest
- New loan = sum of balances + fees
- New payment = new loan × r ÷ (1 − (1 + r)^−n)
- Interest saved = current total interest − (new loan interest + fees)
Frequently asked questions
Does consolidating always save money?
No. It saves money when the new rate is clearly lower than the rates on your debts and the term isn't much longer than it would take to clear them now. A lower monthly payment spread over more years can cost more in total, so check the interest saved as well as the payment.
Why are the fees added to the new loan?
Many lenders take arrangement fees out of the loan itself, so you borrow enough to clear your debts and cover the fee. That means you also pay interest on the fee. If you will pay the fee in cash instead, set it to zero here and remember the cost separately.
What if one of my debts never gets paid off?
If a payment is no more than the interest charged each month, the balance never falls, so there is no payoff date or total interest to compare. Raise that payment until the warning disappears to see a full comparison, or look at the new loan on its own.
Should I keep using my cards after consolidating?
The comparison assumes the old debts are cleared and stay at zero. Running the balances up again means paying both the new loan and fresh card interest, which is how consolidation can leave people worse off.
Related calculators
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- Credit card payoff calculatorSee how long a card balance takes to clear at a fixed payment, or what to pay each month to clear it by a deadline.
- Loan calculatorWork out the monthly payment, total interest and payoff date for a personal, car or business loan.
- Refinance calculatorSee whether switching to a new loan lowers your payment, how soon it pays back the costs and what you save overall.
Results are estimates only, not financial advice. Read the disclaimer.