Debt Consolidation Calculator
Compare multiple credit card and loan balances against a single low-interest consolidation loan to evaluate monthly cash savings and break-even points.
Debt Consolidation Comparison Formulas
Consolidated Principal = Σ(Existing Balances) + Origination Fee | Monthly Savings = Existing Monthly Total − New Loan Payment | Lifetime Savings = Existing Interest − New Loan Interest − Origination Fee- Existing Debts: Sum of all card balances and their weighted average interest rate.
- Consolidation Loan: New fixed installment loan with a lower APR over a set term (e.g. 36 or 60 months).
- Break-Even Months: Origination Fee / Monthly Payment Savings.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Consolidated credit cards are not run up again with new charges after being paid off.
Frequently Asked Questions
When does debt consolidation make financial sense?
Consolidation makes sense when the new loan interest rate is substantially lower than your current credit card APRs (e.g. 10% vs 22%), and when total interest savings comfortably exceed any upfront origination fees.
Related Cost Calculators
Personal Loan Calculator
Calculate monthly personal loan payments, total finance charges, and effective APR including origination fees across 12 to 84-month terms.
Debt Snowball Calculator
Simulate month-by-month debt elimination prioritizing your smallest balances first for rapid psychological momentum and rolled payments.
Debt Avalanche Calculator
Simulate month-by-month debt elimination prioritizing your highest interest rate debts first to mathematically minimize total finance charges.
Credit Card Balance Transfer Calculator
Calculate net dollar savings from a 0% introductory APR balance transfer card after factoring in the upfront 3% to 5% transfer fee.