Debt Consolidation Calculator

Compare paying off your current debt balance as is with one consolidated loan. See the interest difference and the new monthly payment.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Consumer Tools

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New Monthly Payment

$169.98

Interest Savings

$2,761.42

Months Saved

-6

Comparison

Current Total Cost$12,960.00
New Total Cost$10,198.58
Total Savings$2,761.42

Use the Debt Consolidation Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Rolling several debts into one new loan can lower the interest you pay and replace a handful of due dates with a single payment. This calculator lays out that trade-off in concrete numbers, showing what consolidation would do to your monthly payment and total cost so you can see whether the move is worth making.

Under the hood, it takes your total balance, the average APR on your current debts (weight each rate by its balance) and what you now pay on them each month, and works out how many months that payment needs to clear the debt and how much you would pay in total. That is set against a single consolidation loan at the new rate and term, for which it computes the fixed monthly payment and the total repaid. The difference is the savings figure, and months saved compares the two payoff times. Both scenarios assume fixed interest rates and no new borrowing.

Two things quietly undo the savings consolidation promises. Origination fees on the new loan eat into the benefit, are easy to forget and are not included in this calculator's totals, and stretching the repayment term too far can leave you paying more interest overall even at a lower rate. Before committing, confirm the consolidation rate is genuinely below your weighted average existing rate.

Example: Consolidating Two Credit Cards

  1. 1 Input: Card A has $5,000 at 22% APR and Card B has $3,000 at 25% APR, and you pay $240 a month on the two together. Enter $8,000 as Total Debt, the balance-weighted average APR of 23.125% ((5,000 × 22% + 3,000 × 25%) ÷ 8,000), $240 as the current monthly payment, and a consolidation loan at 10% APR for 60 months.
  2. 2 Current path: at 23.125% APR, $240 a month clears $8,000 in 54 months (53.9, rounded up), about $12,960 paid in total ($240 × 54).
  3. 3 Consolidation loan: $8,000 at 10% over 60 months costs $169.98 a month, $10,198.58 in total. Savings: $12,960 − $10,198.58 = $2,761.42, and the monthly payment falls by $70.02.
  4. 4 Months saved shows −6: the new loan runs six months longer than paying $240 a month on the cards would. Choosing a 36-month term instead ($258.14 a month) shows $3,667.05 in savings and 18 months saved, so the rate cut and a shorter term together do the work.

Source: CFPB — Consumer Tools · Last updated: September 2026

Frequently Asked Questions

How does debt consolidation work?
You combine multiple debts into a single loan with one monthly payment, ideally at a lower interest rate. This simplifies repayment and can reduce total interest if the new rate is lower. Common methods include personal loans, balance transfer cards, and home equity loans.
Does debt consolidation hurt your credit score?
There may be a small temporary dip from the hard credit inquiry and new account. However, consolidation can improve your score over time by reducing credit utilization and making on-time payments easier. Do not close old credit cards after consolidating, as this reduces your available credit.
Is debt consolidation worth it?
It is worth it if you get a lower interest rate than your current weighted average rate and you avoid accumulating new debt. If your problem is overspending rather than high rates, consolidation alone will not solve the issue. Compare total interest paid under both scenarios before deciding.

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