Debt Consolidation Calculator
Compare existing debt payments with a consolidation loan and estimate payment and cost differences.
- Free to use
- No account required
- Results shown instantly
Existing Debts
Consolidation Loan
Enter your debts and consolidation terms, then click compare.
What Is Debt Consolidation?
Debt consolidation combines multiple debts into a single loan, ideally with one monthly payment.
The goal is usually a lower monthly payment, a lower interest rate, or a simpler repayment schedule — but consolidation doesn't always reduce total cost.
How Consolidation Loans Work
A new loan pays off your existing balances. You then repay the new loan over its term. The comparison depends on the new rate, term, and any fees.
Monthly Payment vs. Total Borrowing Cost
A lower monthly payment often comes from a longer term, which can increase total interest. Lowering your payment doesn't always mean lowering your total cost.
How Loan Terms Affect Savings
Extending the term spreads repayment over more months, reducing each payment but raising total interest. Shortening the term does the opposite.
Origination Fees and Net Proceeds
A consolidation loan may charge an origination fee. Depending on how it's treated, the fee can reduce net proceeds or increase the financed amount, affecting the true cost.
When Consolidation May Cost More
If the new rate is higher, the term is much longer, or fees are large, consolidation can increase total cost even while lowering the monthly payment.
Debt Consolidation vs. Debt Settlement
Consolidation replaces several debts with one loan you repay in full. Debt settlement negotiates with creditors to pay less than you owe, which can damage credit. They are different strategies.
Risks of Taking on New Debt
Consolidation doesn't remove the underlying debt — it restructures it. If spending habits don't change, balances can return on top of the new loan.
Debt Consolidation Calculator Methodology
How MoneyMetric HQ compares existing debts with a consolidation loan.
Existing debts. Each debt is amortized month-by-month using its balance, rate, and monthly payment to estimate remaining interest and payoff.
Current monthly payment. The sum of the monthly payments on all existing debts.
Consolidation loan. The new loan is amortized with the standard formula on its principal (plus any financed fee).
Monthly difference. Current total monthly payment minus the new consolidation payment.
Interest difference. Current remaining interest minus new loan interest.
Fees. Financed fees increase principal; upfront fees are added to total cost; deducted fees reduce net proceeds. Fees are never double-counted.
Limits. If an existing payment can't cover accruing interest, the calculator warns rather than producing a misleading baseline.
Rounding. MoneyMetric HQ performs calculations using full numerical precision internally and rounds values only for display.
See our full MoneyMetric HQ Methodology page for more.
Debt Consolidation Example
An illustrative multi-debt comparison calculated by the engine.
Card A
$5,000 · 22% · $200/mo
Card B
$3,000 · 18% · $150/mo
Consolidation Loan
$8,000 · 12% · 36 months
The calculator compares current total monthly payments, the new consolidation payment, remaining interest on the existing debts, and interest on the new loan — including any fees. A lower payment doesn't guarantee lower total cost. Use the calculator with your own numbers for an accurate comparison. This is an illustrative example, not a lending offer.
Debt Consolidation Calculator FAQs
What is debt consolidation?
Combining multiple debts into a single loan, usually to simplify repayment or lower the monthly payment. The new loan pays off your existing balances.
Does consolidation lower monthly payments?
It can — often by extending the term or lowering the rate. But a lower payment from a longer term can increase total interest.
Does a lower payment mean lower total cost?
Not always. A longer term lowers the payment but may raise total interest. Compare total interest, not just the monthly payment.
How do origination fees affect savings?
Fees add to the cost. Financed fees increase principal; upfront fees are paid separately; deducted fees reduce net proceeds. The calculator accounts for each treatment.
Can consolidation increase interest costs?
Yes. If the new rate is higher, the term is much longer, or fees are large, total interest can rise even with a lower monthly payment.
Does this calculator affect my credit?
No. It only estimates costs from the numbers you enter. It doesn't pull credit or contact lenders.
Is debt consolidation the same as debt settlement?
No. Consolidation repays debts in full via a new loan. Settlement negotiates to pay less than owed, which can harm credit.
Does this calculator guarantee approval?
No. Results are estimates only and do not represent a loan offer, approval, or eligibility decision.
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MoneyMetric HQ calculators are provided for educational and informational purposes. Results are estimates and may differ from lender, loan-servicer or other financial calculations because of loan terms, payment timing, rounding, fees, taxes, insurance and other factors. MoneyMetric HQ does not provide personalized financial, investment, tax, legal or credit advice. See our Methodology, Financial Disclaimer, and Privacy Policy.