Debt Consolidation Calculator Find out if one loan really beats the debts you have now, including fees and the hidden cost of a longer term
List the debts you want to combine, enter the loan offer you have, and see your new monthly payment, debt-free date, total interest and fees side by side with what you pay today, plus the break-even interest rate that tells you whether any offer is worth taking.
The debts you have now
Untick any you won’t consolidate.
Your consolidation loan
✓Verdict
Calculating.
Four ways to pay off the same debt
Ranked by total interest and fees.
| Route | Monthly payment | Debt-free | Interest and fees | Versus today |
|---|
Total debt over time
What the numbers say
Same loan, different terms
At your rate and fee.
| Term | Monthly payment | Interest and fees | True APR with fee | Versus today |
|---|
Consolidation loan schedule
Is debt consolidation a good idea?
Debt consolidation is a good idea when the new loan’s true cost, its interest rate plus any origination fee, is lower than what your current debts would cost you, and when the new monthly payment fits your budget. It saves money most often when you replace high-rate credit cards with a lower-rate loan of a similar or shorter term. It can cost more if the term is much longer or the fee is high.
Consolidation replaces several debts, usually credit cards, with one new loan and one monthly payment. The appeal is obvious: one due date instead of four, and often a lower rate. But lenders market consolidation by the monthly payment, and a lower payment is not the same thing as a cheaper debt. Stretch the term or add a fee and you can end up paying more in total while feeling like you are paying less.
I built this calculator to make that trade-off impossible to miss. It puts today and after side by side, counts origination fees properly, compares four different payoff routes, and works out the break-even interest rate, the highest rate at which consolidating still saves you money.
How to use this debt consolidation calculator
- List your debts with each current balance, APR and the monthly payment you actually make. Untick any debt you plan to keep separate; it is then treated the same in both scenarios.
- Enter the loan offer: its APR, term and origination fee. Choose whether the fee is taken from the loan or paid upfront. Most lenders deduct it, so you need to borrow a little more to pay off every debt.
- Read the scoreboard for the change in monthly payment, debt-free date and total interest and fees.
- Check the verdict and break-even scale. If your rate sits in the green zone, the loan saves money. If it sits in the red, it costs more.
- Compare the four routes and the term table before you sign anything.
Debt consolidation formulas
Loan amount = debts to pay off ÷ (1 − fee %)When the origination fee is deducted from the loan. $16,000 ÷ 0.96 = $16,666.67, a fee of $666.67.
New monthly payment = L × r ÷ (1 − (1 + r)−n)L = loan amount, r = APR ÷ 12, n = months.
Cost of consolidating = total loan payments − debts paid offThis includes both interest and the fee.
Savings = interest on today’s debts − cost of consolidating
Today’s interest is calculated by running each debt forward month by month at its own APR and current payment until it reaches zero. Credit card minimums fall as balances shrink, so if you only pay minimums today, your real cost of not consolidating is even higher than the calculator shows.
The break-even interest rate
The most useful number on this page is the break-even rate: the highest loan APR at which consolidating still costs less than keeping your current debts, after the fee and at the term you chose. Any offer below it saves money; any offer above it does not, no matter how attractive the monthly payment looks.
For the default example, four debts totaling $16,000 with an average APR of 22.73%, a 48-month loan with a 4% fee breaks even at about 18.18%. Shorten the term to 36 months and the break-even rises to about 24.11%. Lengthen it to 60 months and it falls to about 14.59%. That is why the term matters as much as the rate.
The longer-term trap
The CFPB warns that lower monthly payments on a consolidation loan can come from a longer repayment period, which can raise the total you pay. Here is the default $16,000 at 12.99% with a 4% fee. Today’s debts cost $7,573 in interest:
| Term | Monthly payment | Interest and fees | True APR | Versus today |
|---|---|---|---|---|
| 24 months | $792.29 | $3,015 | 17.16% | Saves $4,559 |
| 36 months | $561.49 | $4,213 | 15.87% | Saves $3,360 |
| 48 months | $447.04 | $5,458 | 15.22% | Saves $2,115 |
| 60 months | $379.13 | $6,748 | 14.82% | Saves $825 |
| 72 months | $334.48 | $8,083 | 14.56% | Costs $509 more |
The 72-month loan has the lowest payment of all, yet it costs more than simply keeping today’s debts. The fix is simple: choose the shortest term you can comfortably afford, or take a longer term for safety and keep paying your old monthly amount. In the default example, paying the old $605 a month into the 48-month loan clears it in 33 months for about $3,899 in interest and fees, saving roughly $3,675.
Origination fees and the true APR
Many personal loans charge an origination fee, often between 0% and about 10% of the loan, usually deducted before you receive the money. The fee raises your effective cost, so the calculator shows a true APR that includes it. For $16,000 over 48 months at a 12.99% rate:
| Origination fee | Loan needed | Monthly payment | Interest and fees | True APR |
|---|---|---|---|---|
| 0% | $16,000 | $429.16 | $4,600 | 12.99% |
| 2% | $16,327 | $437.92 | $5,020 | 14.09% |
| 4% | $16,667 | $447.04 | $5,458 | 15.22% |
| 6% | $17,021 | $456.55 | $5,915 | 16.38% |
| 8% | $17,391 | $466.48 | $6,391 | 17.58% |
When comparing offers, compare the APR disclosed by the lender, which under the Truth in Lending Act already includes the origination fee, rather than the headline interest rate.
Consolidation loan rates by credit score
Your credit score largely decides whether consolidation works. LendingTree reported these average APRs for loans of more than $5,000 with terms of at least 24 months in the second quarter of 2025. Applied to the default $16,000 over 48 months with a 4% fee:
| Credit score | Average APR | Monthly payment | Interest and fees | Versus today ($7,573) |
|---|---|---|---|---|
| 800 to 850 | 11.96% | $438.57 | $5,051 | Saves $2,522 |
| 740 to 799 | 13.62% | $452.27 | $5,709 | Saves $1,864 |
| 670 to 739 | 22.00% | $525.10 | $9,205 | Costs $1,632 more |
| 580 to 669 | 30.06% | $600.68 | $12,833 | Costs $5,260 more |
With good but not excellent credit, the average offer can be more expensive than the cards it replaces. Prequalifying with several lenders, which typically uses a soft credit check, shows your real rate without affecting your score.
Ways to consolidate debt, compared
Personal consolidation loan
Fixed rate, fixed end date
One fixed payment and a firm payoff date. Best with good credit and a rate well below your cards.
0% balance transfer card
Cheapest if paid off in time
Usually a 3% to 5% fee, then 0% for a set period. Use the Credit Card Payoff Calculator to test a transfer.
Home equity loan or HELOC
Lower rate, your home at risk
The CFPB notes you could face foreclosure if you cannot repay, and closing costs can be significant.
Debt management plan
Through nonprofit counseling
A credit counselor negotiates lower rates and you make one payment to the agency. No new loan required.
401(k) loan
Risky for retirement
No credit check, but money leaves your investments, and leaving your job can make it due quickly.
Debt settlement
Not consolidation
Companies may charge fees and tell you to stop paying creditors, which damages credit. The CFPB calls these services risky.
If you would rather not borrow at all, keeping your current payments and directing every extra dollar to the highest-rate debt is often competitive. The table above calls this the avalanche route; the Debt Snowball vs Avalanche Calculator builds a full month-by-month plan for it. Federal student loans are different: they can be combined through a free Direct Consolidation Loan, and private refinancing removes federal protections, so check the Student Loan Repayment Calculator first.
Does debt consolidation hurt your credit?
Usually only briefly. Applying adds a hard inquiry and a new account lowers your average account age, which can dip your score for a short time. Over the following months, paying off card balances lowers your credit utilization, which often helps more than the inquiry hurt, and on-time payments on the new loan build positive history. The biggest risk is behavioral: running the paid-off cards back up leaves you with the loan and new card debt.
How to consolidate debt safely
- Price your current debt first. Enter it here so you know the break-even rate before you talk to any lender.
- Prequalify with three or more lenders, including a credit union, and compare APRs, which include fees.
- Pick the shortest affordable term, or plan to keep paying your old total each month.
- Pay off every included debt immediately, or choose a lender that pays creditors directly.
- Keep paid-off cards open but put them away. Open cards help utilization; new balances undo the plan.
- Avoid upfront-fee debt relief offers. The FTC explains how to spot debt relief scams.
Worked example using the default inputs
Four debts: a Visa card ($6,200 at 22.9%, paying $200), a Mastercard ($4,800 at 26.24%, $160), a store card ($1,500 at 29.99%, $70) and an older personal loan ($3,500 at 14.5%, $175). That is $16,000 at an average 22.73% APR, with $605 a month in payments.
- Today: debt-free in 50 months with about $7,573 in interest.
- Consolidation loan at 12.99% for 48 months with a 4% fee: borrow $16,666.67, pay $447.04 a month, debt-free in 48 months, $5,458 in interest and fees. That lowers the payment by $157.96 and saves about $2,115. True APR with the fee: 15.22%.
- Same $605 budget, avalanche order, no new loan: 38 months, about $6,709 in interest.
- Loan plus keep paying $605: 33 months, about $3,899, the cheapest route.
- Break-even APR for this loan: about 18.18%.
How this calculator works
Each current debt is projected month by month with interest at its APR divided by 12 and its current payment held constant until it is paid off. The avalanche route keeps the same total monthly budget and sends any freed-up money to the highest-rate debt. The consolidation loan is a standard fixed-rate installment loan; when the fee is deducted, the loan is sized so that you receive enough to pay off every included debt. The true APR is the rate that equates the cash you receive with your payments. The break-even APR is found by searching for the rate at which the loan’s interest and fees equal today’s interest. Debts you exclude are projected identically in both scenarios. Every result was checked so that payments equal balances plus interest and fees.
Related debt calculators
More tools in the Debt Payoff and Management collection, and everything else in the finance calculators hub.
Debt consolidation FAQs
It is a good idea when the loan’s APR including fees is below your current average rate and the term is not much longer than your current payoff time. Use the break-even rate in the calculator to check any offer.
It depends on your rates, fee and term. In this calculator’s example, consolidating $16,000 at an average 22.73% into a 48-month loan at 12.99% with a 4% fee saves about $2,115, or about $3,675 if you keep paying your old monthly amount.
Any rate below your break-even APR. For the default example with a 48-month term and 4% fee, that is about 18.18%. A shorter term raises the break-even rate and a longer term lowers it.
It can cause a small, temporary dip from the hard inquiry and new account. Lower card utilization and on-time loan payments often improve your score over the following months.
Because the loan term is longer than your current payoff time. You pay interest for more months. Choose a shorter term or keep paying your old total each month.
A one-time charge for making the loan, often 0% to about 10% of the amount, usually deducted from the money you receive. It raises the true cost, which is why the calculator shows a true APR.
Sometimes, but rates for fair or poor credit can exceed 30%, which may cost more than your cards. A nonprofit debt management plan or the avalanche method may be cheaper.
A 0% balance transfer is often cheaper if you can pay off the balance before the promotion ends. A loan is better for larger balances or when you want a fixed end date.
Most unsecured debts, including credit cards, store cards, medical bills and personal loans. Federal student loans have their own Direct Consolidation program, and mortgages and car loans are usually refinanced separately.
Usually keep them open to protect your credit utilization and history, but stop using them. Close a card only if it has an annual fee or you cannot avoid using it.
Consolidation repays your debts in full with a new loan. Settlement tries to pay creditors less than you owe, usually after you stop paying, which seriously damages credit and can involve high fees.
It uses standard loan formulas and checked month-by-month projections, but results are estimates. Lender fees, your exact payments and rate changes on current cards will affect real results.
Manzoor Ahmad
Founder of DexoCalc, 13+ years of web development and SEO experience
Manzoor designs, codes and tests every DexoCalc calculator himself. For this tool he modeled each debt month by month, built the fee-adjusted true APR and break-even rate from standard loan math, and based the guidance on CFPB, FTC and Federal Reserve sources. Read more about Manzoor.
Sources and references
- Consumer Financial Protection Bureau, What do I need to know about consolidating my credit card debt?
- Board of Governors of the Federal Reserve System, G.19 Consumer Credit, personal loan and credit card rates.
- LendingTree, Debt consolidation loan rates by credit score (Q2 2025 data).
- Federal Trade Commission, How To Get Out of Debt.
- Consumer Financial Protection Bureau, Regulation Z (Truth in Lending).
This debt consolidation calculator provides estimates for education and planning. It assumes fixed rates, your current payments held constant, monthly interest, and that the loan pays off every included debt in full. It is not financial or credit advice.