DebtPayoffTools

Debt Consolidation Calculator

Compare keeping your debts as they are against consolidating them into one loan, on payment and on total interest.

Last reviewed

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Free · No sign-up · Runs in your browser

Consolidation is sold on the monthly payment, and the monthly payment almost always falls - because the term is usually longer. Whether the debt costs less depends on the rate and the term together, and those are the two things the marketing tends not to compare.

This calculator computes the weighted average rate across your existing debts, then compares the current path against a consolidation loan on both payment and total interest.

Your numbers

Results update as you type. Nothing is sent anywhere.

One per line: name, balance, annual rate, minimum payment.

Result

Your current weighted average rate

13.2%

Interest saved by consolidating

$2,449

Total balance
$23,700
Current minimum payments
$685
Interest on the current path
$10,215
Amount consolidated
$24,300
Consolidated payment
$534
Consolidated interest
$7,765
Payment difference
$151
Current path payoff
90 months

The current path assumes you keep paying exactly the minimums you entered with nothing extra.

Consolidating into a longer term can lower the payment while raising total interest. Compare both numbers before deciding.

How to use the debt consolidation calculator

  1. List each existing debt: name, balance, rate, minimum payment.
  2. Enter the rate and term offered on the consolidation loan.
  3. Add any arrangement or balance transfer fee.
  4. Compare total interest, not just the payment.

What people use this for

  • Deciding whether a consolidation offer is genuinely cheaper.
  • Finding the weighted average rate you are currently paying.
  • Comparing consolidation against simply paying extra on the highest-rate debt.
  • Testing how the consolidation term changes the answer.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

Consolidating into a five-year loan

Four debts consolidated at 11.5% over 5 years with a $600 fee.

Your current weighted average rate
13.2%
Interest saved by consolidating
$2,449
Consolidated payment
$534

A shorter consolidation term

The same debts consolidated over 3 years instead of 5.

Consolidated payment
$801
Consolidated interest
$4,548
Payment difference
-$116

The weighted average rate is the number to beat

A consolidation loan only reduces the cost of borrowing if its rate is below the weighted average of what you are paying now - and the weighting is by balance, so a small store card at 27% matters less than a large car loan at 6%.

That surprises people. A household with one high-rate card and a large low-rate car loan frequently has a weighted average well below any consolidation offer they will be shown.

A lower payment is not a saving

Stretching the same debt over a longer term reduces the payment and increases total interest. That can still be the right decision if the current payments are unmanageable - but it is a restructuring, not a saving, and the two should not be confused.

The honest test is total interest. If consolidation reduces it, it is cheaper. If it only reduces the payment, it is buying cash flow at a stated price.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • The weighted average rate weights each debt’s rate by its balance.
  • The current path assumes minimum payments only with no rollover, which is deliberately the worst case.
  • The consolidation loan amortises the total balance plus any fee at the new rate over the new term.
  • Results are estimates. Real quotes depend on credit, income, property, loan programme and lender pricing at the time of application.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator is provided for informational and educational purposes only. Results are estimates and may not reflect actual rates, fees, taxes, or market conditions.

This website is not a lender, a mortgage broker or a financial adviser. It does not originate loans, does not accept applications and does not forward your details to anyone.

Actual loan terms depend on credit history, income, the property, the loan programme and lender pricing at the time of application. Only a lender can tell you what you qualify for.

Frequently asked questions

Does consolidation hurt my credit?

Effects vary - a new account and a hard search typically weigh against it in the short term, while lower utilisation can help. This calculator addresses cost only.

What about a 0% balance transfer?

Enter 0 as the rate and the transfer fee as the consolidation fee, and set the term to the promotional period. What happens after that period is the risk.

Is consolidation better than the avalanche method?

Only if the rate is genuinely lower than your weighted average. Otherwise paying extra on the highest-rate debt costs less.

What is the biggest risk?

Clearing cards through consolidation and then using them again. That converts one debt into two, and it is the most common way consolidation makes things worse.

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