This debt consolidation calculator compares paying off your current debts as you are now with rolling them into one new loan. It includes the new loan’s origination fee, so you see the real saving or cost.
How the comparison works
For your current debts, the calculator applies your monthly payment to the balance at your current average APR until it is paid off. For the new loan, it borrows enough to cover your balance plus the fee, then works out the fixed payment and total interest over the new term.
Worked example
You owe $20,000 at an average of 22% and pay $600 a month, which would take 4 years 4 months and about $11,192 in interest. A 48-month consolidation loan at 12% with a 3% fee costs about $542.97 a month and $6,062 in interest and fees, a saving of about $5,130.
Frequently asked questions
When does consolidation not help?
When the new rate is not much lower, the fee is high, or the new term is much longer. A lower payment over more years can cost more in total.
What is the biggest risk?
Running up the paid-off credit cards again. Consolidation only saves money if the old balances stay at zero.