Debt Consolidation Calculator
Add each debt's balance and APR, then enter the rate and term of a loan you're considering to consolidate them into. The tool amortizes every debt over the same timeline so the comparison is apples to apples, and updates live as you type.
How this calculator works
Each debt in your list is amortized on its own — at its own APR — over the exact same number of months as your proposed consolidation term, using the standard formula M = P·r / (1 − (1 + r)−n). Adding up every debt's payment gives the "separate" monthly total; adding up every debt's interest gives the "separate" total interest. The "consolidated" scenario simply sums every balance into one principal and amortizes that single number at the consolidation loan's own APR, over the same term. Whichever side has less total interest is genuinely cheaper — the honest answer always comes down to whether the consolidation APR beats the balance-weighted average APR of what you already owe.
Worked example
Three debts: $8,000 at 24% APR, $5,000 at 12% APR, and $2,000 at 27% APR — $15,000 total, a balance-weighted average of 20.40% APR. Amortized separately over 36 months, they cost $313.86 + $166.07 + $81.65 = $561.58 a month, with $5,217.05 in combined interest. Roll all three into one $15,000 loan at 11% APR over the same 36 months, and the payment drops to $491.08 a month with just $2,678.91 in interest — a real savings of $2,538.15, because 11% genuinely beats the 20.40% weighted average. Change the consolidation offer to a rate above 20.40% and the tool will tell you, just as plainly, that consolidating costs more.
Frequently asked questions
How do you make paying separately and consolidating a fair comparison?
By fixing the timeline. For the 'separate' scenario, each debt is amortized at its own APR over the SAME number of months as the proposed consolidation term — so the comparison isn't skewed by, say, credit cards you'd actually pay off in 8 months versus a loan stretched over 3 years. With the timeline held constant, whichever scenario has less total interest is genuinely the cheaper one.
When does consolidating actually save money?
Whenever the consolidation loan's APR is lower than the weighted average APR of your current debts (weighted by balance). If your combined debts average, say, 20% APR and you're offered an 11% consolidation loan, you save on interest and usually lower your monthly payment too. If the consolidation offer's APR is actually higher — common if your credit score dropped or the loan carries fees baked into the rate — consolidating can cost you more, and this tool will say so plainly.
Does this include fees, like origination or balance-transfer fees?
No — this compares interest cost only, based on the APR and term you enter. Origination fees, balance-transfer fees, and closing costs on a real consolidation loan would add to its true cost, so factor those in separately when comparing an actual offer; a loan with a slightly lower APR but a large origination fee can end up costing more than the numbers here suggest.
What if I add debts with very different APRs?
That's exactly when consolidation math gets interesting — a single high-APR card can drag the weighted average up a lot even if your other balances are low-rate. Add all your debts and watch the weighted-average figure in your results: it's the real number to beat with a consolidation offer, not any single debt's rate.