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Debt Consolidation Calculator

Compare your current debts against a consolidation loan — with strategy analysis, break-even, and rate/term sensitivity.

Your Existing Debts
Current Plan Strategy

How you'd pay your current debts vs. consolidation. Avalanche = highest rate first. Snowball = smallest balance first.

Consolidation Loan
Consolidation Analysis
Net Result
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Enter your debts to analyze
Current Plan
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Monthly Payment
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Total Interest
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Total Paid
Consolidated
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Monthly Payment
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Total Interest + Fee
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Total Paid
Current Monthly
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Consol Monthly
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Monthly Savings
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Total Savings
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Origination Fee
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Break-Even
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months to recoup fee
Chart: current plan.

Monthly payment and total interest comparison

Payment = P·r(1+r)ⁿ/((1+r)ⁿ−1) | Savings = Current Total − Consol Total
Consolidated Loan Amortization Schedule

Balance and payment breakdown for the consolidated loan. Shown quarterly for readability.

Month Remaining Balance Payment Interest Principal
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Rate Scenarios

How your outcome changes if the consolidation rate shifts.

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Rate × Term Sensitivity Matrix

Total savings vs your current plan across all rate/term combinations. ◀ marks your current selection.

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Rate Sensitivity Table

How different consolidation rates affect total savings.

RateMonthlyTotal InterestTotal Paidvs Current
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Term Sensitivity Table

How different loan terms affect monthly payment and total cost.

TermMonthlyTotal InterestTotal Paidvs Current
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How to Use This Calculator

1

Enter Current Debts

List each debt with balance, interest rate, and minimum payment. Tag each by type (credit card, personal loan, etc.).

2

Choose a Strategy

Compare against Minimums, Avalanche (highest rate first), or Snowball (smallest balance first) to see the real difference.

3

Analyze the Results

Review total savings, break-even months, the interest timeline chart, and the rate/term sensitivity matrix.

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Formula & Methodology

Consolidated Monthly Payment

M = P[r(1+r)^n] / [(1+r)^n - 1]

Standard amortization formula applied to the total consolidated balance (including origination fee) at the new rate.

Break-Even Point

Break-Even Months = Origination Fee ÷ Monthly Savings

How many months until cumulative monthly savings offset the upfront origination fee.

Avalanche vs Snowball Simulation

Surplus = Consolidated Monthly − Sum(All Minimums)

Both strategies use the same total monthly budget as the consolidated payment. Surplus is allocated to the highest-rate debt (Avalanche) or smallest balance (Snowball).

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Key Terms Explained

Debt Consolidation Combining multiple debts into a single loan, ideally at a lower interest rate to reduce total interest cost.
Origination Fee An upfront fee charged by the lender (typically 1–8% of the loan amount) that is usually rolled into the loan principal.
Weighted Average Rate The average interest rate across all existing debts, weighted by each balance. The consolidation rate must beat this to save money.
Avalanche Strategy Pay minimum on all debts, then apply extra toward the highest-rate debt. Minimizes total interest paid.
Snowball Strategy Pay minimum on all debts, then apply extra toward the smallest balance. Creates psychological momentum by eliminating accounts faster.
Balance Transfer Moving credit card debt to a new card with a promotional 0% APR period (typically 12–21 months) — an alternative to consolidation loans.
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Real-World Examples

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Alex

High-Interest Credit Card Consolidation

Inputs: 3 cards totaling $15,000 at 18–24% APR. Consolidation loan: 8% for 48 months, 1% origination fee.

Result: Result: Monthly payment drops from $510 to $366, saving $4,200 in total interest. Break-even in 3 months.

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Is Debt Consolidation Right for You?

When Consolidation Makes Sense

Consolidation works best when your consolidation rate is meaningfully below your weighted average rate, you have a stable income to sustain the new payment, and you have the discipline not to run up new balances on the freed-up credit cards. Use the Avalanche/Snowball comparison to check: if strategic repayment beats consolidation on total interest, you may not need to consolidate at all.

Hidden Costs to Watch For

Origination fees (1–8%), prepayment penalties on existing loans, and the temptation to extend repayment over a longer term can erode interest savings. Always compare total cost, not just monthly payment — a lower monthly payment over 7 years often costs more than a higher payment over 3.

The Break-Even Test

If the origination fee is $500 and you save $75/month, you break even in ~7 months. If you plan to pay off the loan before break-even, the fee may not be worth it. This calculator shows your exact break-even month automatically.

Alternatives to Consider

Before consolidating, explore 0% APR balance transfer cards (saves the origination fee), negotiating directly with creditors for hardship rates, or using the debt avalanche/snowball strategies with your current accounts. For federal student loans, income-driven repayment and forgiveness programs are often superior to private consolidation.

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Frequently Asked Questions

How does debt consolidation save me money?+

Debt consolidation combines multiple high-interest debts into a single loan with a lower interest rate. The savings come from reduced interest charges over the life of the loan, though extending the repayment term could increase total interest paid if you are not careful.

What types of debt can I consolidate?+

You can typically consolidate credit card balances, personal loans, medical bills, and other unsecured debts. Student loans and mortgages have their own specialized consolidation programs. Secured debts like auto loans are usually not included in standard consolidation.

Will debt consolidation hurt my credit score?+

Initially, applying for a consolidation loan triggers a hard credit inquiry, which may slightly lower your score. However, consolidating debt often improves your credit over time by reducing credit utilization and making it easier to make consistent on-time payments.

What is the difference between a debt consolidation loan and a balance transfer?+

A debt consolidation loan is a new personal loan used to pay off multiple debts, typically with a fixed rate for 3-7 years. A balance transfer moves credit card debt to a new card with a 0% introductory APR (usually 12-21 months), after which a higher rate applies.

When is debt consolidation NOT a good idea?+

Consolidation may not help if you cannot qualify for a lower interest rate than your current debts, if your total debt is small enough to pay off within 6-12 months, or if you have not addressed the spending habits that created the debt in the first place.