Debt Consolidation Loan Calculator
Put your current debts — balance, APR, minimum payment — next to one consolidation loan, and see total interest, months to debt-free, and the honest interest-saved verdict. Free, instant, no data stored.
Read our plain-language debt consolidation guide →
Comparison Result
Worked example (this exact scenario is the calculator's default)
Three debts, $13,000 total, and a 12% APR / 48-month consolidation loan on offer. All figures are estimates shown to illustrate the math — yours depend on the APR you actually qualify for and the payments you commit to.
| Debt | Balance | APR | Min +/mo | Months to $0 | Total paid | Interest |
|---|---|---|---|---|---|---|
| Credit card A | $6,000 | 24.99% | $180 | 58 | $10,440 | $4,440 |
| Credit card B | $4,000 | 19.99% | $120 | 50 | $6,000 | $2,000 |
| Personal loan | $3,000 | 11.99% | $100 | 36 | $3,600 | $600 |
| Before — keep paying minimums | $13,000 owed | 58 (slowest) | $20,040 | $7,040 | ||
| After — consolidate at 12% / 48 mo | $13,000 owed | 48 | $16,432 | $3,432 | ||
In this scenario the loan is estimated to save roughly $3,600 in interest — but note the honest comparison: the consolidated payment is about $342/month against ~$400 of minimums today, and the debt is still $13,000 before and after. Consolidation only changed the interest and monthly cost; it reduced nothing you owe. At a 25% APR loan over 84 months, the same tool flips to a negative verdict — run your own numbers before assuming savings.
How the two sides are computed: the "before" side pays each debt's fixed minimum until zero (58 / 50 / 36 months here). This is a conservative, like-for-like assumption — real card minimums decline as balances fall, which tends to stretch the payoff and typically increases total interest versus this fixed-payment baseline. The "after" side is a standard fixed-rate amortizing loan. Interest figures are estimates, not offers.
How the comparison works
- The "before" side. Each debt is amortized separately at its own APR with your stated minimum payment held fixed. We report each debt's months-to-zero, total paid, and total interest, then sum them. If any minimum can't cover that debt's monthly interest, that debt never amortizes — we say so instead of inventing a number.
- The "after" side. Your balances (plus any origination fee you enter) become one fixed-rate loan. A standard amortization formula gives the fixed monthly payment, total paid, and total interest; a fixed loan pays off exactly on its term, so months-to-debt-free is the term you chose.
- The verdict. Interest saved = before-side interest − after-side interest. It can be negative — a longer term or a higher APR than your debts carry is common, and we show that rather than sugarcoating it. We also show the monthly-payment change, because a loan that lowers total interest but raises tonight's required bill can still break a tight budget.
Consolidation is one of four paths. If you're considering reducing the amount owed rather than its cost, read debt settlement vs. bankruptcy and try the four-path comparison calculator. Lenders look at your debt-to-income ratio when underwriting: check yours with the DTI calculator or read the DTI glossary entry.
Frequently asked questions
Does debt consolidation reduce the total amount I owe?
No. Consolidation pays off your existing debts at their full face value and replaces them with one new loan for the same total. What changes is the interest rate, the term, and the shape of your monthly payment — not the amount owed. Only debt settlement, bankruptcy, or a hardship program result in any portion of the debt actually being forgiven. Anyone promising that consolidation will "wipe out" debt is misdescribing it.
When does a consolidation loan actually save money?
Only when the combined effect of a lower APR and a shorter (or honest) term beats the interest you would otherwise pay. A lower rate stretched over a much longer term can cost more total interest, not less — this calculator shows that verdict directly as a positive or negative "interest saved" figure.
What APR will I qualify for?
We don't know your credit profile and this tool doesn't run a check. As a planning anchor, market rate ranges by credit band are widely published and change frequently; check current offers from your bank, credit union, or a comparison site and enter the offer you actually have. Enter your real quoted APR — the difference between a good and bad rate flips the savings verdict.
Why did my "before" total use fixed minimum payments?
This calculator holds each debt's minimum payment constant to keep the comparison like-for-like. Real card minimums shrink as balances fall, which usually means you pay LESS than we showed here each month but stay in debt longer and often pay MORE total interest. Holding the payment fixed is the conservative framing for the consolidation side of the comparison.
Does the loan length matter as much as the rate?
Yes — often more. A 5% APR loan over 84 months can cost more total interest than a 15% loan over 36 months. Always compare term plus APR together, and check whether the monthly payment is something you can sustain rather than just the lowest payment available.
Will my credit score improve after consolidating?
We deliberately do not predict scores. Closing several revolving accounts and opening a new installment loan moves multiple credit factors at once (utilization, mix, inquiries, age of accounts), and the net effect differs by person. Any specific score promise from a lender or debt-relief marketer should be treated as marketing, not a forecast.