Debt Consolidation Calculator
See if consolidating your debts could lower your monthly payment and reduce total interest paid.
Before you calculate
Compare fees and the new term before interpreting lower payments as savings. The estimate does not predict loan approval or credit-score changes.
How Debt Consolidation Works
Debt consolidation combines multiple debts into a single loan with one monthly payment. The goal is to reduce your interest rate and/or extend your term to lower your monthly obligation.
Monthly payment = Principal × monthly rate / (1 − (1 + monthly rate)^(-months))Example Scenarios
Lower rate, same term
Consolidating $10,000 across three cards averaging 20% APR into a 10% personal loan over 60 months reduces your monthly payment and saves thousands in interest.
Watch out for longer terms
Extending a $10,000 debt from 3 years to 7 years at the same rate lowers your monthly payment but increases total interest paid. Always compare total cost, not just the monthly payment.
Methodology & Assumptions
Original interest estimates assume minimum payments for each debt until paid off. New loan uses standard amortization. Results do not include origination fees or prepayment penalties.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.