The Debt Consolidation Calculator helps you determine whether consolidating multiple debts (credit cards, auto loans, personal loans) into a single loan is financially worthwhile. It compares the effective APR of your current debts against the APR of the new consolidation loan — including all fees — so you can see the true cost, monthly payment, payoff length, and total interest for each scenario.
| # | Debt Name | Remaining Balance ($) | Monthly Payment ($) | Interest Rate (%) |
|---|
| Total Balance | $0.00 |
| Total Monthly Payment | $0.00 |
| Weighted Avg. Interest Rate | 0.00% |
| Loan Amount ($) | |
| Interest Rate (%) | |
| Loan Term | years months |
| Loan Fee / Points |
Enter your debts and the consolidation loan offer above, then click Calculate.
Debt consolidation is a form of debt restructuring that combines several loans into one, mainly for two reasons: to lower the interest rate or to lower the monthly payment amount. With a good consolidation loan, it is possible to lower both. Another reason people consolidate is simplicity — instead of dealing with multiple different loans, debts, and payment due dates each month, a consolidated loan requires only one payment, relieving hassle and saving time.
Most loans require the payment of upfront fees. As a result, the real cost (real APR) of a loan is higher than the interest rate advertised by the lender. This calculator determines the real APR of a consolidated loan after adjusting for applicable fees, which is the more accurate and comparable indicator of the financial cost of a loan.
Home equity loans, home equity lines of credit (HELOCs), and cash-out refinances are common sources of funds used for debt consolidation. These are secured loans tied to collateral (such as real estate), which makes them lower-risk for lenders and therefore lower interest rates. On the other hand, unsecured loans — such as personal loans or balance-transfer credit cards — can also be used to consolidate debts. They tend to have higher interest rates and lower loan limits because there is no collateral attached to them.
The calculator uses the following approach to compare your current debts against the consolidation loan:
While effective loan consolidation can lower the financial burden, it is worth considering tackling the root of the burden first. For many people, this is a change in habits such as spending less and saving more. For others, it may be a journey toward living within or below their means. In some cases, it can even be seeking a higher income. These methods are more effective in the long term at erasing debt than simply consolidating it. In any case, budgets are practical ways to sort out financial situations before the question of whether or not to consolidate loans arises.
Is this calculator free? — Yes, completely free and works entirely in your browser. Your financial data never leaves your device.
Does it include all fees? — Yes, you can specify the loan fee as a percentage of the loan amount or as a fixed dollar amount. The calculator folds it into the effective APR.
What is APR? — Annual Percentage Rate — the yearly cost of a loan including interest and fees. It is a more accurate measure than the interest rate alone.
Can I use it for credit card debt? — Absolutely. Credit cards, personal loans, auto loans, medical debt, and student loans can all be entered as individual debts.
Should I consolidate if the APR is lower? — Not necessarily. Consider the total interest paid over the full term, the loan fees, and whether the longer term offsets the lower rate. The calculator's total-interest comparison helps you decide.