Quick start
- Open the Debt Consolidation Calculator.
- Enter the total debt you would roll into the new loan.
- Enter the current weighted average APR and total current monthly payment.
- Enter the new loan APR, term, and any fees added to the new balance.
- Calculate, then compare the new monthly payment, monthly payment change, and total cost change before trusting the offer.
Best uses
Start here if one of these sounds like your job. The examples below show which inputs matter most.
- Compare a quoted consolidation loan with your current payoff path.
- Check whether a lower rate offsets fees and a new term.
- Spot a lower monthly payment that could still cost more over time.
- Prepare sharper questions before applying for a consolidation offer.
What this calculator is for
The Debt Consolidation Calculator compares two paths: keep paying the current debts or roll them into a new fixed-payment loan. It helps show when a lower monthly payment is real savings and when it is just a longer debt path.
Use it when you have a real or possible consolidation offer and want to see whether the lower rate, fee, and term beat the payoff path you already have.
What to enter
Debt consolidation estimates get shaky when the advertised rate is not the real APR, fees are ignored, the term is stretched too far, or a home-equity offer turns unsecured debt into debt backed by your home.
- Enter the total debt you would actually consolidate.
- Enter the current weighted average APR and the total monthly payment you already make.
- Enter the new loan APR, term, and any fees that would be added to the new balance.
Example walkthrough
Try the starter example: $18,000 debt, 18% current APR, $650 current payment, 10.5% new loan APR, 3-year term, and $300 fee. The estimate is a $594.79 new payment, about $55.21 less per month, and about $2,023.05 lower total cost.
- $18,000 of debt at 18% with a $650 current payment is compared with a new 10.5% loan for 3 years plus a $300 fee.
- The estimate is a $594.79 new payment, about $55.21 less per month, and about $2,023.05 lower total cost.
Formula and steps
In plain language: The calculator estimates the current payoff path, adds entered fees to the new loan principal, calculates the new fixed payment, then compares payment size and total paid. $18,000 at 18% with a $650 current payment compared with a 10.5% three-year consolidation loan plus a $300 fee estimates a $594.79 new payment, about $55.21 less per month, and about $2,023.05 lower total cost.
Start by estimating the current payoff path from the current balance, weighted APR, and monthly payment. Then add fees to the new loan balance, calculate the fixed consolidation payment, and compare monthly payment and total paid across both paths.
How to read the answer
Start with total cost change, then check monthly payment change. If the payment is lower but total cost is higher, the offer is giving relief now by keeping the debt around longer.
- New payment is the estimated monthly payment on the consolidation loan.
- Monthly payment change shows whether the new payment is higher or lower than the current payment.
- Total cost change shows whether the new path costs more or less overall after the fee and term are included.
Common mistakes to avoid
Most bad consolidation estimates come from using the best advertised rate instead of the actual offer, forgetting fees, mixing monthly and annual rates, or ignoring the reason the debt grew in the first place.
- Do not choose a consolidation option by monthly payment alone.
- Do not forget origination fees, balance transfer rules, teaser rates, credit impact, hardship plans, settlement offers, or home-equity risk.
- Do not assume approval, the advertised rate, or a debt-relief company promise is guaranteed.
What to try next
A related money tool can help check the same question from another angle before you rely on one result.
- Use Debt Payoff Calculator to test the current path with extra payments.
- Use Credit Cards Payoff Calculator before rolling several cards into one shortcut.
- Use Loan Calculator to inspect the new loan payment by itself.
Sources and estimate notes
CFPB consolidation guidance is useful because a lower payment can hide fees, a longer term, or new risk. FTC debt guidance helps with debt-relief scam warnings, while consumer.gov keeps the budget test simple before a new loan is signed.
Source links improve transparency, but they do not turn a quick calculator into professional advice or a final loan, tax, payroll, or investment answer.
Worked examples for Debt Consolidation Calculator
$594.79 new payment, about $55.21 less per month, about $2,023.05 lower total cost
Compare payment relief with total cost
Check whether lower payment hides extra total cost
FAQ in plain language
When should I use the Debt Consolidation Calculator?
Use it when you want to test the exact inputs on this page: Compare a quoted consolidation loan with your current payoff path. Check whether a lower rate offsets fees and a new term. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.
What do the main Debt Consolidation Calculator inputs mean?
Total current debt means the balances you would actually roll into the new loan. Current average rate means the weighted average annual rate on those debts, not the lowest card rate. Current monthly payment means the total amount you are already paying toward those debts each month. New loan rate means the annual rate from the real offer or the rate you are testing. New loan term means how many years the new loan would run. Fees added means origination, transfer, closing, or setup fees that become part of the new cost.
Can a lower consolidation payment still cost more?
Yes. A lower monthly payment can come from stretching the debt over more years. Always compare total paid, fees, and the new term, not only the monthly number.
Does this tell me whether I will be approved?
No. Lenders still check credit, income, debt-to-income ratio, collateral, and their own rules. This page only compares the math after you enter a possible offer.
What is the Debt Consolidation Calculator doing with my numbers?
In plain language: The calculator estimates the current payoff path, adds entered fees to the new loan principal, calculates the new fixed payment, then compares payment size and total paid. $18,000 at 18% with a $650 current payment compared with a 10.5% three-year consolidation loan plus a $300 fee estimates a $594.79 new payment, about $55.21 less per month, and about $2,023.05 lower total cost.
How should I read the Debt Consolidation Calculator answer?
Start with total cost change, then check monthly payment change. A smaller payment only helps if the full cost, fee, term, and risk still make sense.
What does this estimate leave out?
This does not decide approval, credit score impact, teaser-rate risk, home-equity risk, hardship plans, settlement offers, or whether taking new debt is a good idea. Before signing, compare the Loan Estimate or offer paperwork, ask about fees and rate changes, avoid debt-relief scams, and consider a nonprofit credit counselor when the debt is hard to manage.
Related tools
- Debt Payoff Calculator Check how fast a fixed debt can disappear when you pay the regular amount plus extra.
- Credit Cards Payoff Calculator Estimate a combined credit card payoff from balance, weighted APR, regular payment, and extra payment.
- Loan Calculator Estimate a fixed monthly loan payment, total paid, and total interest from amount, rate, and term.
Keep exploring
If this guide is close but not exact, these links keep you near the same kind of problem.
- Finance Browse the full category for related tools that help with the same job.
- All free tools Search the complete Access Free Tools library by task, category, or tool name.
- All calculator and utility guides Find more plain-language examples, formulas, mistakes, and result explanations.
- Free calculator resources Start here when you are not sure which calculator page fits.
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