Debt Consolidation Calculator
Compare your current debt payments to a single consolidation loan — see monthly savings and total interest impact.
Enter up to 3 debts. Only Debt 1 is required.
Does Debt Consolidation Make Sense?
Consolidation makes financial sense when your new loan rate is meaningfully lower than your weighted average current rate AND you do not extend the term significantly. Consolidating five credit cards averaging 22% APR into a 12% personal loan saves substantial interest — as long as you do not run the cards back up afterward.
The Term Extension Trap
Lower monthly payments from consolidation often come from extending the repayment term. A 60-month consolidation loan at 12% on $20,000 costs $444/month and $6,640 in interest. Extending to 84 months drops payments to $351 but increases total interest to $9,484. Know what you are trading — payment relief for total cost.
Consolidation vs Balance Transfer
Balance transfer cards offering 0% APR for 12–21 months can be superior to personal loan consolidation if you can pay off the balance in time. The 3–5% transfer fee is cheaper than a year of personal loan interest for most amounts. The risk: higher ongoing rates if the balance remains after the promotional period ends.