How it works
Determine if consolidating your debts into a single loan can save you money on interest or lower your monthly payments.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
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?currentDebt=Total Debt AmountNumber · Optional · Default: 15,000
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?currentPayment=Total Monthly PaymentNumber · Optional · Default: 450
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?currentRate=Avg Interest Rate (APR)Number · Optional · Default: 18
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?newRate=New Interest RateNumber · Optional · Default: 10
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?newTerm=Loan Term (Years)Number · Optional · Default: 3
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?fees=Loan Fees / Closing CostsNumber · Optional · Default: 0
Outputs
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resultResultText · Primary output
result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.
Evaluate the benefits of a single consolidation loan
Description
The Debt Consolidation Calculator helps you decide if it makes financial sense to combine multiple high-interest debts (like credit cards) into a single personal loan. It compares your current total payments and interest rates against a new loan’s terms to show your potential monthly and total savings.
Inputs
- Total Debt Amount: The combined sum of all debts you plan to consolidate ($).
- Total Monthly Payment: The total amount you are currently paying toward these debts each month ($).
- Avg Interest Rate (APR): The weighted average interest rate across your current debts (%).
- New Interest Rate: The interest rate offered for the consolidation loan (%).
- Loan Term (Years): The length of the new consolidation loan.
- Loan Fees / Closing Costs: Any upfront fees or points required to secure the new loan ($).
Outputs
- New Monthly Payment: Your single monthly installment for the consolidation loan.
- Monthly Savings: The difference between your old total payments and the new loan payment.
- Total Interest Savings: The total dollar amount you will save over the life of the loan compared to your current trajectory.
- Consolidation Recommendation: A summary advising whether the consolidation is financially beneficial.
Chart
- N/A: This tool provides a direct comparison and recommendation summary.
“Good to Know”
- Consolidation is most effective when the new loan’s interest rate is significantly lower than your current average rate.
- Watch out for “closing costs” or “origination fees” on the new loan, as they can sometimes eat up the interest savings.
- Avoid the temptation to run up new balances on the credit cards you just paid off with the consolidation loan; this can lead to a much larger debt burden.
Examples
Example 1: Successful Consolidation
- Input:
- Current Debt: $15,000 @ 18% (Paying $450)
- New Loan: 10% for 3 Years
- Output:
- New Payment: ~$484
- Monthly Savings: -$34 (higher payment) but Total Interest Savings: ~$2,500 because the debt is paid off much faster.
Example 2: Lowering Monthly Payment
- Input:
- Current Debt: $10,000 @ 22% (Paying $400)
- New Loan: 12% for 5 Years
- Output:
- New Payment: ~$222
- Monthly Savings: ~$178
- (Provides immediate cash flow relief).
Example 3: Impact of Fees
- Input:
- Debt: $5,000
- New Rate: 8%
- Fees: $500
- Output:
- The $500 fee must be offset by long-term interest savings to be worth it.