Debt Consolidation Calculator

Enter your credit cards and other debts to compare your current payoff plan vs one consolidation loan, including monthly payment, payoff time, interest, fees, and savings if you keep paying the same amount.

How to use our Debt Consolidation Calculator

1. Add each debt (one per card/loan). Enter a name (optional), current balance (USD), APR (percent), and your monthly payment (USD).
2. Double-check that each monthly payment is what you really pay each month (not the minimum unless that is what you pay).
3. Enter the consolidation loan APR (percent) and the term (years).
4. Choose how you want to enter fees: percent of the loan amount or a flat dollar fee, then enter the fee value.
5. Open Advanced options if you want to choose whether the fee is financed (added to the loan) or paid out of pocket.
6. In Advanced options, set an extra monthly payment if you plan to pay more than the required payment.
7. If you want, set Extra payment rule to use monthly savings so the calculator automatically applies (current total payment minus new required payment), if that number is positive.
8. Click Calculate and compare the payoff months, total interest, and net savings including fees.

Definitions

Debt consolidation: Replacing several debts with one new loan, usually to simplify payments or lower cost.[3]

Balance: How much you owe right now.

APR (annual percentage rate): The yearly interest rate shown as a percent. This calculator estimates a monthly rate as APR divided by 12.

Principal: The starting loan amount you borrow (the balance you must pay back), not counting future interest.

Term: How long the loan lasts, measured here in years (converted to months for the math).

Amortization: Paying a loan down over time with monthly payments that cover interest plus some principal, so the balance eventually reaches zero.

Origination fee: A one-time fee a lender may charge to make the loan. It can be paid upfront or added to the amount you borrow.

Weighted average APR: An average where bigger balances count more than smaller ones.

Not paying down: When your monthly payment is not enough to cover that month's interest, so the balance would not shrink.

Methodology

What this calculator compares

Scenario A (current plan): Each debt keeps its own APR and fixed monthly payment until it is paid off.

Scenario B (new loan): All balances are rolled into one installment loan with a chosen APR and term, plus optional fees and optional extra monthly payments.

Step 1: Convert APR to a monthly rate

monthly_rate = (apr_percent / 100) / 12

This uses a simple monthly compounding estimate (APR divided by 12). Real lenders can calculate interest using slightly different daily methods, so your statement may differ a bit.

Step 2: Current totals

current_total_balance = sum(balance_i)

current_total_monthly_payment = sum(payment_i)

current_weighted_apr_percent = sum(balance_i * apr_i) / sum(balance_i)

If total balance is 0 or you have no rows, the calculator blocks calculation and asks you to add at least one debt.

Step 3: Realistic payoff check (avoids fake payoff dates)

For each debt, the calculator checks whether your payment can actually reduce the balance. This matters because some payments (like a too-low minimum) may not even cover interest.

monthly_interest = balance * monthly_rate

if payment <= monthly_interest then status = "Not paying down"

If any debt is labeled Not paying down, the current-plan payoff time and current-plan total interest show N/A, and the Warnings card names the specific debt rows that caused it. This is meant to prevent misleading results.[3]

Step 4: Current-plan payoff simulation (when feasible)

When all debts are feasible, each debt is simulated month by month until the balance reaches 0 (or until a safety cap of 1200 months).

each month: interest = balance*r; principal_paid = payment - interest; balance = balance - principal_paid

Total interest is the sum of monthly interest across all months and all debts. If the simulation would take more than 1200 months, payoff time and interest show N/A and a warning tells you to increase payments or check inputs.

Step 5: New consolidation loan amount and fees

First, the loan amount before fees is the sum of balances. Then fees are computed based on your fee mode.

loan_amount_before_fee = current_total_balance

if fee_mode = percent then fee_usd = loan_amount_before_fee * (fee_percent/100)

if fee_mode = flat USD then fee_usd = fee_flat_usd

if fee_treatment = financed then new_principal = loan_amount_before_fee + fee_usd

if fee_treatment = out_of_pocket then new_principal = loan_amount_before_fee

The fee is always counted in total fees and total cost. Financing it increases the principal, which can increase interest.

Step 6: New required payment (amortized loan)

For an installment loan, the required payment is the fixed payment that pays the balance to 0 over the chosen term.[3]

n = term_years * 12

if r > 0: payment = P * r / (1 - (1+r)^(-n))

if r = 0: payment = P / n

Step 7: Extra payment and payoff with extra

You can add an extra monthly payment, or you can tell the calculator to automatically use your monthly savings (if any) as the extra amount.

extra_auto = max(0, current_total_monthly_payment - new_required_monthly_payment)

new_payment_with_extra = new_required_monthly_payment + extra_used

The new loan is then simulated month by month using the same payoff simulation idea as above. Paying extra can shorten payoff time and reduce interest.

Step 8: Interest, fees, and savings outputs

interest_savings_vs_current = current_total_interest - new_total_interest

new_total_cost = new_total_interest + new_total_fees

net_savings_including_fees = current_total_interest - (new_total_interest + new_total_fees)

Note: This is a math comparison based on your inputs. It assumes no new charges, no missed payments, and APRs that stay the same. Also, interest rules (including what may or may not be deductible) depend on your situation.[2]

Sources