Debt Consolidation Calculator
Compare paying off your current debts at their existing minimum payments against rolling them into one new consolidation loan — including the new loan's origination fee.
Existing debts
New consolidation loan
Added to the amount financed
New Loan Amortization (Yearly)
| Year | Paid | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $4,514.40 | $1,502.84 | $3,011.56 | $11,408.44 |
| 2 | $4,514.40 | $1,137.65 | $3,376.75 | $8,031.69 |
| 3 | $4,514.40 | $728.19 | $3,786.21 | $4,245.48 |
| 4 | $4,514.57 | $269.09 | $4,245.48 | $0.00 |
How the comparison works
This calculator simulates paying off your existing debts in parallel at their stated minimum payments to find the real-world total interest cost, then compares that against a single amortizing loan covering the combined balance plus any origination fee.
For example, three debts totaling $14,000 at an average 20.16% APR consolidate into a single $376.20/month loan, saving $3,120 in interest.
Frequently asked questions
What is debt consolidation?
Debt consolidation combines multiple debts — credit cards, personal loans — into a single new loan, ideally at a lower interest rate. Instead of juggling several payments and due dates, you make one payment each month.
Does consolidating debt always save money?
No — it only saves interest if the new loan's rate (after factoring in any origination fee) is meaningfully lower than the weighted average rate of your existing debts. Stretching the term can lower your monthly payment while still costing more in total interest.
What credit score do I need to consolidate debt?
Lenders typically reserve their best rates for borrowers with good to excellent credit (generally 670+). With a lower score, the new loan's rate may not beat your current average rate — run the numbers before applying.
Is a balance transfer credit card a form of debt consolidation?
Yes — many people consolidate via a 0% APR balance transfer card instead of a personal loan. These often charge a 3–5% transfer fee and the 0% rate is temporary, so they work best if you can pay off the balance before the promotional period ends.
Will consolidating my debt hurt my credit score?
Applying triggers a hard credit inquiry, which can cause a small, temporary dip. Over time, consolidation can help your score by lowering your credit utilization on revolving accounts and ensuring more consistent on-time payments.