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Debt Consolidation Calculator

See whether a consolidation loan is worth it by comparing its fee-adjusted APR with the combined APR of your current debts — plus monthly payment, payoff time, and total interest.

Maintained by CalculatorBuddy TeamEditorial methodology

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ExampleSample values — edit any field to see your result.

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Face amount of the new consolidation loan. After fees, leftover cash can cover a shortfall or stay in your pocket.

%

Advertised annual rate. Real APR is higher when the loan charges an upfront fee.

years
months

Percent of the loan amount (points or origination). Deducted from what you can use to pay off existing debts.

Results update as you type.

Consolidation loan APR

Lower modeled APR

13.25%

Fee-adjusted annual percentage rate of the new loan — the number to compare with your current debts.

Estimated result

The APR of your current debts are 18.92%. The APR of your consolidation loan, with fee considered, is 13.25%. The new loan has the lower modeled cost of credit. Compare its term, total payments, cash needed, and risks before deciding. After loan fee of $1,250.00, you can get $23,750.00 to be used to payoff your remaining debt balance of $24,000.00. So, you will need additional $250.00 for consolidation.

Current debts APR
18.92%
Current monthly pay
$630.00
New monthly pay
$543.44
Monthly payment change
$86.56
Upfront cash from consolidation
-$250.00

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Compare scenarios

Keep a baseline, then change an assumption to see its effect side by side.

Existing debts vs consolidation loan

Existing debtsConsolidation loan
APR18.92%13.25%
Monthly pay$630.00$543.44
Time to payoff59 months (4 years and 11 months)60 months (5 years)
Loan fee/points$0.00$1,250.00
Upfront cash flow for consolidation$0.00-$250.00
Total payments$36,963.17$32,606.15
Total interests$12,963.17$7,606.15

Enter up to 20 debts — names, remaining balances, monthly or minimum payments, and rates — plus the consolidation loan amount, rate, term, and fee. The calculator compares fee-adjusted APR, monthly payment, payoff time, and total interest so you can see whether combining the debts is actually cheaper.

Default example

Existing debtsConsolidation loan
APR18.92%13.25%
Monthly pay$630.00$543.44
Time to payoff59 months (4 years 11 months)60 months (5 years)
Loan fee$0$1,250.00
Upfront cash flow$0−$250.00
Total payments$36,963.17$32,606.15
Total interest$12,963.17$7,606.15

Examples

Three cards, 5% origination

Credit card 1 is $10,000 at 17.99% paying $260. Card 2 is $7,500 at 19.99% paying $190. A high-interest debt is $6,500 at 18.99% paying $180. A $25,000 five-year loan at 10.99% with a 5% fee has a 13.25% APR versus 18.92% on the current debts, a $543.44 payment versus $630, and about $5,357 less interest. You need $250 extra at closing because $23,750 net proceeds is short of the $24,000 still owed.

Same loan with a 20% fee

Raise the fee to 20% ($5,000). The contractual payment is unchanged, but APR jumps to 21.21% — higher than the 18.92% modeled for the current payments. You would also need $4,000 extra cash to retire the old balances.

Formula

Existing debts keep a fixed total equal to the sum of the stated monthly payments. Each month, interest compounds at APR ÷ 12, minimums are paid, and any leftover (including a minimum freed when a debt clears) goes to the highest APR still owing. Combined remaining-debt APR is the IRR of that payment stream against the remaining balances.

The new loan is a standard amortizing payment on the face amount. Monthly rate r is the annual rate ÷ 12; n is years × 12 + extra months:

payment = P × r / (1 − (1 + r)^(−n))
APR from fees = 12 × IRR(payment vs P − fee)

Totals use the unrounded payment × n, then round to cents. Displayed APR is rounded to two decimals. The label reports whether the new modeled APR is lower, similar, or higher; it is not a personalized recommendation.

In the default scenario, a 15% fee produces an 18.33% modeled APR versus 18.92% for the existing payment stream. A 20% fee produces 21.21%. Review the total-payment and term rows as well as APR; a lower monthly payment can simply extend repayment.

Decision limits

The existing side assumes every current minimum stays in one fixed payment pool and rolls freed cash to the highest APR. The new side assumes a fixed-rate installment loan. The comparison excludes new charges, balance-transfer expiration, late fees, tax effects, collateral risk, and behavioral changes.

Frequently asked questions

How do I know if debt consolidation will save money?
Compare fee-adjusted APR, not the advertised rate. This calculator finds the combined APR of your current debts (the IRR of the payments you are already making) and the real APR of the new loan after origination or points. A lower modeled APR indicates a lower annualized cost under these cash flows, but term, total payments, upfront cash, collateral, and whether old balances return still matter.
Why is the consolidation APR higher than the interest rate?
Upfront fees reduce the cash you actually receive, but you still repay the full face amount. APR is the internal rate of return of those payments against loan minus fees. A 10.99% loan with a 5% fee over five years has an APR around 13.25% — still often cheaper than credit cards, but not the 10.99% on the flyer.
What if the loan amount does not match my remaining balances?
After the fee, leftover cash can sit in your pocket, or a shortfall has to come from savings so you can actually retire the old debts. The upfront cash-flow line is (loan − fee) − remaining balances. A negative number is extra cash you need at closing.
Do I keep paying the same total on my current debts?
The existing-debt side assumes you keep sending the opening total of the stated monthly or minimum payments until everything is clear — leftover from a paid-off account stays in the pool and goes to the highest APR still owing. That is why payoff can be a few months shorter than the new loan even when each minimum barely covers interest.
Should I consolidate with a home equity loan or a personal loan?
Secured options such as a home equity loan, HELOC, or cash-out refinance usually have lower rates because the house is collateral. Unsecured personal loans and balance-transfer cards are simpler but often cost more and have lower limits. Rank offers by fee-inclusive APR, and fix the spending pattern that created the balances first.

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