Debt Consolidation Calculator
Compare a consolidation loan’s payment and total cost, fee included, with paying your debts as you are now.
Free · No sign-up · Your inputs stay in your browser
Your numbers
Compare the loan with staying put
Your projection
The loan costs $2,422 less
New monthly payment
$498.96
Total cost of the loan
$5,950
Interest and fee over 4 years.
Cost at current payments
$8,372
Paid off in 3y 8m.
The fee is usually taken from the loan, so you borrow more than you owe. Consolidation only works if the cards stay paid off; running them back up leaves two debts where there was one.
About this tool
Method, assumptions, practical next steps, and limits.
Lower payment is not the same as lower cost
A consolidation loan replaces several balances with one fixed payment. It helps when the new rate is meaningfully lower and the term is not much longer than your current payoff path.
How the calculation works
Origination fees are usually subtracted from the loan, so you borrow debt ÷ (1 − fee). The new loan uses standard amortization. The current path applies your current payment to the balance at its average APR.
Consolidating $18,000 with a 5% fee means borrowing $18,947. At 12% over four years the payment is $498.96, and the total cost in interest and fee is about $5,950. The current path at 22% with $600 a month takes about three years and eight months and costs about $8,372.
When it backfires
If cleared cards are used again, you end up with the loan and new card balances. Be cautious with debt settlement companies that charge upfront fees; the FTC and CFPB warn against them.
