Debt Consolidation Calculator
Find out whether rolling your credit cards and other debts into one loan would save you money. Enter what you owe and the loan you've been offered to compare the monthly payment, payoff time and total cost.
Results are estimates. The calculator applies each APR monthly, assumes no new charges or late fees, and keeps each current payment the same until that debt is paid off. The loan's origination fee is taken out of the amount you borrow. See our terms of use.
How to use this calculator
- List the debts you want to consolidate. For each card or loan, enter the balance, the APR and what you pay each month. All three are on your statements. Use "+ Add a debt" for more rows.
- Enter the loan offer: its interest rate, term and origination fee. Use the interest rate, not the APR. The APR already includes the fee, so entering the APR plus the fee would count the fee twice.
- Compare the two columns. The cheaper option is marked "Lower cost", and the summary below it explains how your total cost and your monthly payment would change.
How the calculator works
The calculator follows both options month by month. If you keep your current debts, each one is charged one-twelfth of its APR on the balance every month. Your payment covers that interest first, and the rest reduces the balance. When a debt is paid off, its payment stops. If a payment doesn't even cover the monthly interest, the calculator flags that debt, because it would never be paid off.
For the consolidation loan, the origination fee comes out of the loan, so you have to borrow more than you owe:
Loan amount = Total debt ÷ (1 − fee)
The monthly payment comes from the standard formula for a fixed-rate loan:
M = P × r(1 + r)n ÷ [(1 + r)n − 1]
Here P is the loan amount, r is the monthly interest rate (the annual rate ÷ 12) and n is the number of months.
Example: the calculator starts with three debts totaling $14,500: a credit card at 24.99%, a store card at 28.99% and a personal loan at 15%. Their payments add up to $480.00 a month, and in the first month $277.00 of that goes to interest. At those payments you'd be debt-free in 4 years 10 months, after paying $8,384 in interest.
Now take a 36-month loan at 12% with a 5% fee. To have $14,500 left after the fee, you'd borrow $15,263, so the fee is $763. The payment is $506.96 a month, and you'd pay $2,987 in interest. Counting the fee, the loan costs $4,634 less than keeping your debts, and you'd be debt-free 1 year 10 months sooner. The catch: the payment is $26.96 a month higher than what you pay now.
Origination fees and APR
Many consolidation loans charge an origination fee, a one-time charge that's often a percentage of the loan amount. Lenders frequently take it out of the loan before you get the money. Fees vary from lender to lender, and some loans have none, so always compare offers with the fee included.
The APR does that for you: it combines the interest rate and the fee into one yearly rate. In the example, a 12% rate with a 5% fee works out to an APR of 15.61%, shown under the loan. Compare it with the average APR of your current debts, weighted by balance: 22.92% in the example.
Lower payment or lower cost? Choosing the term
A longer term lowers the payment but adds interest. Here's the same $15,263 loan at 12% over each term the calculator offers. Total paid includes the $763 fee, and the last column compares it with the $22,884 you'd pay by keeping your current debts.
| Loan term | Monthly payment | Total interest | Total paid | You save |
|---|---|---|---|---|
| 24 months | $718.49 | $1,981 | $17,244 | $5,640 |
| 36 months | $506.96 | $2,987 | $18,250 | $4,634 |
| 48 months | $401.94 | $4,030 | $19,293 | $3,591 |
| 60 months | $339.52 | $5,108 | $20,371 | $2,513 |
Every term saves money here, because the loan's rate is far below the cards' rates. The 48- and 60-month loans also lower your payment, but the 60-month loan saves less than half as much as the 24-month loan.
A higher rate can wipe out the savings. At 18% for 60 months, the payment would drop to $387.58, which is $92.42 less than now. But you'd pay $371 more in total than by keeping your current debts. When a loan lowers your payment only by stretching it out like this, the calculator warns you.
What is debt consolidation?
Debt consolidation means using one new loan or account to pay off several debts, so you have a single payment instead of many. You still owe the same amount. The goal is a lower interest rate, a set payoff date, or both. These are the main ways to do it:
- Debt consolidation loan. A personal loan pays off your other debts, and you repay it in fixed monthly payments over a set term. Lenders base your rate on your credit score and reports, your income and your other debts. In Federal Reserve data for the second quarter of 2026, commercial banks charged about 12% on average for 24-month personal loans, compared with about 22% on credit card accounts that were charged interest.
- Balance transfer card. You move card balances to a new card with a low or 0% promotional rate. By law it has to last at least six months, unless you fall more than 60 days behind. Expect a transfer fee, usually a percentage of the amount you move, and a higher rate when the promotion ends. Our balance transfer calculator runs the numbers.
- Home equity loan or line of credit. The rate may be lower because your home is the collateral, and that's the danger: you turn unsecured card debt into debt secured by your house. If you can't repay, you could lose your home to foreclosure. There may be closing costs, too, and using home equity to pay off credit cards doesn't make the interest tax-deductible.
- Debt management plan. This isn't a loan. A nonprofit credit counseling agency sets up a plan with your creditors, and you make one payment to the agency each month. The agency works to lower your monthly payment, and creditors may agree to cut interest or fees. Ask about the agency's own fees, and get a quote in writing.
When consolidation makes sense
A consolidation loan is most likely to help when:
- its APR, with the fee, is clearly lower than what your debts charge now;
- you can comfortably afford the payment; and
- the term isn't much longer than you'd need to pay off your debts anyway.
It's a poor fit if the only benefit is a lower payment from a longer term, or if your credit won't get you a low rate. And if you spend more than you earn, a new loan alone won't fix the problem.
Part of the savings in our example comes simply from paying more each month: $506.96 instead of $480.00. Before you borrow, see what a bigger payment would do for your current debts in our debt payoff calculator.
Don't run up your cards again
The biggest risk comes after the loan. Your cards are paid off but still open, with their full limits available. If you start using them again, you'll have the loan payment plus new card balances, and more debt than when you started.
- Make a budget that covers your bills without the cards.
- Build a small emergency fund so a surprise expense doesn't go on a card.
- Think twice before closing the paid-off cards. Closing a card reduces your available credit, which can raise your utilization and lower your score. Keep them somewhere you won't reach for them instead.
How consolidation affects your credit score
- Applying: a formal application usually means a hard inquiry, which can lower your score. Some lenders let you check your rate first with a soft inquiry, which doesn't affect it.
- Paying off cards: moving card balances to an installment loan lowers your credit utilization, the share of your card limits you're using, and that can help your score. Experts advise keeping it at no more than 30%.
- Paying on time: paying every bill on time has the biggest effect on your score, so steady, on-time loan payments help most over time.
Frequently asked questions
My offer only shows an APR. What do I enter?
Enter the APR as the interest rate and set the fee to 0. The payment and total cost come out about the same, with the fee counted as interest.
Why does the calculator borrow more than I owe?
Because the fee comes out of the loan. If you borrowed exactly $14,500 with a 5% fee, you'd receive $13,775 and still owe $725 on your old debts. The calculator sizes the loan so that what's left after the fee pays off everything.
Is debt consolidation the same as debt settlement?
No. With consolidation you still repay everything you owe, through the new loan. Debt settlement companies try to get your creditors to accept less. They often charge fees and may tell you to stop paying your debts, which can hurt your credit and add interest and penalty fees. A nonprofit credit counselor is a safer place to start.
Can I include federal student loans?
Think carefully first. Paying off federal student loans with a private loan can't be undone, and you'd lose federal benefits such as income-driven repayment and loan forgiveness programs. Federal loans have their own program, the Direct Consolidation Loan. Its rate is the weighted average of your loans' rates, rounded up to the nearest one-eighth of a percent.
Will I qualify for a consolidation loan?
It depends on the lender. Most look at your credit score and reports, your income and your other debts. Our debt-to-income ratio calculator shows how your monthly debt payments compare with your income.
Last reviewed: October 2026