Debt Consolidation Calculator
Every consolidation offer leads with the monthly payment, because that is the number that feels best. A smaller payment is not a cheaper debt. This shows the total cost after fees. and what happens if the cards go back up.
Total you would save
-
- New monthly payment
- $0
- Change to your payment
- $0
- Interest as you are now
- $0
- Interest after consolidating
- $0
- Fee taken out of the loan
- $0
What each route costs you
Each block is sized by its share, so you can see whether new monthly payment or change to your payment is the bigger part without reading a single number.
Move it and watch
-
at {v} for debt 1 balance
And what you can change
Why your own figure may differ
Payment down, total up
The same loan over different lengths. Watch the payment fall and the total rise at the same time. This is the trade every offer is really making.
| Over | Monthly payment | Total interest | vs staying put |
|---|
Debt consolidation: real examples
Three consolidation offers worth seeing in full. Click any card to load it.
- A genuine saving
$13,000 of cards at 20%, offered 10% over 4 years
Two cards, a real drop in rate, a sensible term.
A clear win - $3,316 saved overall, and the payment falls $70 a month too. The rate drops and the term stays short.
Load this scenario in the calculator → - The payment illusion
The same debt stretched over 7 years
The monthly payment looks wonderful. The saving does not.
The payment falls $184 a month, but your saving collapses from $3,316 to $1,013. Most of the benefit is handed straight back in extra interest.
Load this scenario in the calculator → - The fee that hides
A 5% origination fee
Taken out of the loan before you see it.
To clear $13,000 you must borrow $13,684. The $684 fee cuts your saving from $3,316 to $2,483 before you make a single payment.
Load this scenario in the calculator →
Common questions about debt consolidation
Does consolidating actually save money?
Only if two things are true. The new rate has to be genuinely lower once the fee is counted, and you have to keep the term short. A loan that halves your monthly payment by doubling the length usually costs more overall, not less. This tool shows the total, not just the payment, so you can see which one you are being offered.
What is the catch with a lower monthly payment?
A smaller payment is not a cheaper debt. Almost every consolidation offer leads with the payment because it is the number that feels best. Stretch a debt from three years to seven and the payment drops a lot while the total cost rises. The comparison table here shows both figures for every term.
What is an origination fee?
A charge for making the loan, usually a percentage of the amount, and usually taken out of the money before it reaches you. So to clear $13,000 of debt with a 5% fee you actually have to borrow $13,684. This calculator handles that properly rather than pretending the fee does not exist.
What is the real risk here?
That you clear the cards, feel relieved, and start using them again. Now you have the loan and the cards. This is the most common way consolidation goes wrong, and no lender calculator will mention it. Ours has a box that models it, because seeing the number is more convincing than being warned.
Will this hurt my credit score?
Applying leaves a mark, and a new account lowers the average age of your accounts. But clearing card balances usually improves the share of your limit you are using, which matters more. Most people see a dip and then a recovery, provided the cards stay clear.
Is a balance transfer better than a loan?
Sometimes. A card offering 0% for a period can beat any loan, if you can genuinely clear the balance before the offer ends. If you cannot, the rate afterwards is usually punishing. A loan gives you a fixed payment and a fixed end date, which suits people who want the decision taken out of their hands.