Debt Consolidation Calculator
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Compare consolidating your debts into one new loan vs. your current payment path. See if consolidation will save you money.
Enter your values below and click Calculate for instant results.
Debt consolidation combines multiple debts — typically credit cards, medical bills, or personal loans — into a single new loan, ideally at a lower interest rate and with a fixed monthly payment. Done correctly, it simplifies repayment and reduces the total interest paid over time. Done poorly, it can extend the repayment period and actually cost more.
💡 Consolidation makes mathematical sense when your new interest rate is meaningfully lower than the average rate on your existing debts. If your credit cards are at 22% APR and you can consolidate at 10%, the savings are significant. If the new rate is close to or higher than your current rates, the main benefit is simplicity, not savings.
The most common consolidation options are personal loans, balance transfer credit cards, home equity loans, and home equity lines of credit. Personal loans are the most widely accessible and don't require home equity. Balance transfer cards can offer 0% APR promotional periods but charge transfer fees and revert to high rates if the balance isn't paid before the promotional period ends.
The most common mistake with debt consolidation is paying off credit cards through consolidation and then running the balances back up. This leaves you with both the consolidation loan and new credit card debt — worse than where you started. Consolidation is most effective as part of a broader commitment to changing spending habits, not as a standalone move.