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Debt Consolidation Calculator

Compare paying your debts as they are with one consolidation loan. On $20,000 of debt at 22% the default loan saves about $5,636.15 in interest.

When debt consolidation saves money

Consolidation replaces several balances with one loan. It saves money when the new rate is lower than your current average rate and you do not stretch the term too far. The fee is financed into the loan in this calculator.

In the default case, $20,000 at 22% with a $600 payment would take 52 months and $11,192.20 in interest. A 48 month loan at 11% with a 3% fee costs $5,556.05 in total and has a payment of $532.42, saving $5,636.15.

Before you consolidate

  • Compare the all-in cost, including fees, not just the monthly payment.
  • A longer term lowers the payment but can raise total interest.
  • Do not run up new balances on the cards you paid off.
  • Good alternatives: balance transfer cards, a debt management plan or the avalanche method.

Compare with the credit card payoff calculator and check the real cost with the APR calculator.

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    Frequently asked questions

    Does debt consolidation hurt your credit?

    There is a small temporary dip from the credit inquiry. Paying down card balances usually helps your score over time.

    Is a consolidation loan better than a balance transfer?

    A 0% balance transfer can be cheaper if you can pay it off before the promo ends. A loan gives a fixed payment and term.

    What interest rate do I need for it to be worth it?

    Any rate meaningfully below your current average, after fees, saves money if you keep a similar or shorter term.

    Can I consolidate student loans with this?

    Federal loans have special protections. Consolidating them into a private loan removes those benefits.

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