Debt Consolidation Calculator
Compare your current debts with a consolidation loan to see potential savings on interest, monthly payments, and payoff timeline.
How it works: Enter details about your current debts (credit cards, personal loans, etc.) and the proposed consolidation loan. The calculator will show you the total interest savings, monthly payment changes, and how much faster (or slower) you'll become debt-free. This helps you evaluate whether consolidation makes financial sense for your situation.
Current Debts
| Debt Name | Balance ($) ? Current outstanding balance on this debt | APR (%) ? Annual Percentage Rate (interest rate) | Min. Payment ($) ? Minimum monthly payment required | Action |
|---|---|---|---|---|
Proposed Consolidation Loan
Please enter a valid loan amount
APR must be between 0% and 50%
Term must be between 12 and 360 months
Fee must be between 0% and 15%
Savings Analysis
Monthly Payment Change
$0
vs. current total
Total Interest Savings
$0
over loan lifetime
Time to Debt-Free
0 months
difference
Break-Even Point
0 months
to recover origination fee
Detailed Comparison
| Metric | Current Debts | Consolidation Loan | Difference |
|---|---|---|---|
| Total Balance | $0 | $0 | $0 |
| Weighted Avg. APR | 0% | 0% | 0% |
| Monthly Payment | $0 | $0 | $0 |
| Total Interest Paid | $0 | $0 | $0 |
| Payoff Timeline | 0 months | 0 months | 0 months |
| Origination Fee | $0 | $0 | $0 |
How We Calculate
Weighted Average APR (Current Debts)
Weighted APR = Σ(Balance × APR) / Total Balance
Each debt's interest rate is weighted by its balance to find the average rate you're currently paying across all debts.
Monthly Payment (Consolidation Loan)
Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Standard amortization formula where P = principal, r = monthly interest rate, n = number of months. This calculates your fixed monthly payment.
Total Interest Paid
Total Interest = (Monthly Payment × Term) - Principal
The difference between all payments made over the loan term and the original amount borrowed.
Interest Savings Calculation
Savings = Current Total Interest - (Consolidation Interest + Origination Fee)
Positive values indicate you'll pay less interest with consolidation. Negative values mean consolidation costs more overall.
Break-Even Point
Break-Even = Origination Fee / Monthly Interest Savings
How many months it takes for your interest savings to offset the upfront origination fee. After this point, you're truly saving money.
Current Debt Payoff Timeline
Estimated using minimum payments and compound interest
Calculated by simulating monthly payments with interest accrual until each debt reaches zero. This is an approximation assuming consistent minimum payments.
