Debt Consolidation Calculator — Merge Debts Lower Rate
Compare your current multiple debts against a single consolidation loan. See if consolidating saves money and reduces monthly payments.
How to use this calculator
👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉
In plain English — what does this do?
🏠 You want to buy something big (like a house or car) but you don’t have all the money right now. A bank gives you the money today, and you pay it back little by little every month. This tool tells you ‘how much do I pay each month?’
The Debt Consolidation Calculator compares your current multiple debts against a single consolidation loan. It shows whether rolling all your balances into one loan at a lower rate will reduce your monthly payment and save money on total interest over the life of the debt.
Current Debts
Consolidation Loan
Current
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monthly payment
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total interest
Consolidated
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monthly payment
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total interest
You save
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What is Debt Consolidation Calculator — Merge Debts Lower Rate?
The Debt Consolidation Calculator compares your current multiple debts against a single consolidation loan. It shows whether rolling all your balances into one loan at a lower rate will reduce your monthly payment and save money on total interest over the life of the debt.
How to use it
- 1️⃣ Enter the balance, interest rate, and minimum monthly payment for each of your current debts.
- 2️⃣ Click Add debt to include additional accounts.
- 3️⃣ Enter the interest rate and term (in months) for the consolidation loan you are considering.
- 4️⃣ Compare the current monthly payment and total interest against the consolidated loan figures.
- 5️⃣ Review the savings panel to see how much you stand to save — or pay more — by consolidating.
Formula
💡 See it in action — a real example
❓ Common questions
- When does debt consolidation make sense?
- Consolidation typically makes sense when you can qualify for a loan rate meaningfully lower than your current average rate, and when you have the discipline not to run up new balances on the cards you pay off.
- Will consolidating hurt my credit score?
- Applying for a new loan triggers a hard inquiry, which may temporarily lower your score by a few points. Over time, consolidation can improve your score by reducing your credit utilization ratio.
- What types of loans are used for consolidation?
- Common options include personal loans, balance transfer credit cards (often with a 0% promotional period), home equity loans, and credit union loans. Each has different rates, fees, and risk profiles.
- Why might my monthly payment be higher after consolidation?
- If the consolidation loan has a shorter repayment term than your current debts, the monthly payment could increase even if the rate is lower. The calculator shows this trade-off clearly.
- Does this calculator include origination fees?
- The current version uses the loan amount and rate directly. If your consolidation loan has origination fees, reduce the loan amount by the fee amount to get a more accurate comparison.