About the Debt Consolidation Calculator
Debt consolidation means taking one new loan to pay off several debts, so you make a single monthly payment, ideally at a lower interest rate. Whether it really saves money depends on the new rate, the length of the new loan and any fees. This debt consolidation calculator takes each of your debts with its balance, rate and monthly payment, works out how long and how much interest it would take to clear them as they are, and compares that with a single new loan at the rate, term and fee you enter. It shows the new payment, the interest and fees, the monthly change and whether consolidating saves or costs you more overall.
Updated October 2026
How to use the Debt Consolidation Calculator
- 1Type one debt per line: the balance, the yearly interest rate and the monthly payment.
- 2Enter the interest rate and the term in months of the new consolidation loan.
- 3Enter any fee for the new loan as a percent of the amount.
- 4Read the interest saved or added, and the change in your monthly payment.
- 5Check the months until you are debt-free under each plan.
When consolidation makes sense
- The new interest rate is clearly below your average rate
- The term is not much longer than the time you'd need anyway
- Fees are low or zero
- You have a plan to avoid running up new balances
- The single payment helps you stay organised and on time
Alternatives to try
If your debts are manageable, the avalanche method of paying extra on the highest-rate debt first often saves as much as consolidation without any fees. The Debt Payoff Calculator shows how that works. If you are struggling to keep up, a non-profit credit counselling service can set up a repayment plan and talk to your creditors, which is often better than taking a bigger loan.
Related tools
Use the Debt Payoff Calculator to plan extra payments, the Credit Card Payoff Calculator for a single card, the Loan Calculator for the payment on any loan, the APR Calculator to include fees in the true rate and the Debt-to-Income Calculator to see how lenders view your debts. This tool is for comparison and is not financial advice.
Features
- Up to 20 debts compared at once
- Months and interest to clear each debt as it is
- New loan payment and total interest
- Fee included in the comparison
- Average interest rate of your current debts
- Warning if a payment never covers the interest
- Runs in your browser
Frequently asked questions
Does debt consolidation save money?
It can if the new loan has a lower interest rate than your debts on average and the term is not much longer. A lower payment from a longer term may feel better each month but can cost more in total interest. The calculator shows both the monthly change and the overall saving.
How do I enter my debts?
Put each debt on its own line as three numbers: the balance, the yearly interest rate and the monthly payment you make. For a 6,500 card at 22.9 percent with a 190 payment, write 6500 22.9 190. Use the payment you actually make, which should be more than the monthly interest.
Why does it say my payment doesn't cover the interest?
If the monthly payment is less than the interest added each month, the balance grows and never reaches zero. The tool tells you which debt it is so you can raise the payment or check the numbers. This often happens with credit cards at minimum payments.
What about balance transfer cards?
A balance transfer to a 0 percent card can be cheaper than a loan if you can pay the balance before the promotional period ends and the transfer fee is small. You can test it by entering the promotional rate, the length of the promotion as the term and the transfer fee as the fee.
Will consolidating hurt my credit score?
A new loan creates a credit check and a new account, which can lower your score slightly at first. Paying off cards can improve it by lowering your credit use, if you do not run the cards up again. The effect varies, and the calculator doesn't model it.
What are the risks of consolidation?
The main risk is that the cards are empty again and you have both the new loan and new debt. Secured loans, such as against your home, put the property at risk if you cannot pay. Avoid loans with high fees and always check the total cost.