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Debt Consolidation Calculator

See if combining multiple debts into a single loan could lower your monthly payment and save on interest.

Your Current Debts

Name Balance APR % Min Payment
Total Balance: $0
Total Monthly: $0
Avg APR: 0%

Consolidation Loan Details

Enter the terms of a consolidation loan you're considering.

%
months

Common terms: 36, 48, 60, 84 months

Add your debts and click Compare Options

to see if consolidation makes sense

Debt Consolidation

Debt consolidation combines multiple debts into a single loan with one monthly payment. It can simplify your finances and potentially save money if you qualify for a lower interest rate than your current debts' weighted average.

How to Use

  1. 1 Enter each of your current debts with balance, APR, and minimum payment.
  2. 2 Enter the interest rate and term for a consolidation loan you're considering.
  3. 3 Click "Compare Options" to see a side-by-side comparison.
  4. 4 Review total interest, monthly payment, and payoff time differences.

FAQ

When does consolidation make sense?

Consolidation typically makes sense when you can get a lower interest rate than the weighted average of your current debts, you want to simplify multiple payments into one, or you need a lower monthly payment (though this may cost more in total interest).

What are the risks of consolidation?

The main risks are: extending your payoff timeline (paying more total interest), running up new debt on paid-off cards, fees that offset savings, and potentially converting unsecured debt to secured debt (like a home equity loan).

What about origination fees?

Many consolidation loans charge 1-8% origination fees. This calculator doesn't include fees—factor them in by adding the fee amount to your total debt or comparing net proceeds. A $10,000 loan with 5% fee only gives you $9,500.

Should I close paid-off accounts?

Generally, keep credit cards open but don't use them—closing accounts can hurt your credit score by reducing available credit and shortening credit history. However, if you can't resist using them, closing may be better for your finances.

Consolidation vs balance transfer?

Balance transfers offer 0% APR for 12-21 months but have transfer fees and high rates after the promo period. Consolidation loans have fixed rates for the full term. Balance transfers work better for debt you can pay off quickly.

What credit score do I need?

For the best rates (under 10%), you typically need a score of 720+. Scores of 670-719 get decent rates. Below 670, you may struggle to get rates lower than your current debts, making consolidation less beneficial.

Calculator Limitations

This calculator doesn't include origination fees, assumes fixed rates, and calculates current payoff assuming minimum payments only. Actual loan offers will vary based on your credit profile.