Debt Consolidation Calculator
Compare your current debts against a single consolidation loan to see your potential savings.
How debt consolidation savings are calculated
This calculator adds up the balances of up to three existing debts and estimates what it would cost to pay each one off on its own over a standard 36-month baseline at its own interest rate, then blends those into a combined current monthly payment. It compares that to a single new consolidation loan — using your total balance, new APR and new term — to show the new monthly payment. The difference between the two is your estimated monthly savings (or added cost) from consolidating.
When does debt consolidation make sense?
Consolidation tends to save money when your new loan's APR is meaningfully lower than the blended rate across your current debts, which is common when replacing high-rate credit cards (often 18-25%+) with a lower-rate personal loan or a loan secured against an asset. It also simplifies your finances by replacing multiple payments and due dates with a single fixed monthly payment and a clear payoff date, which can reduce the risk of missed payments.
What are the risks of consolidating debt?
If your new loan's term is much longer than your current payoff timeline, you could end up with a lower monthly payment but pay more in total interest over time, even at a lower rate. Consolidation also doesn't reduce the amount you owe, so it only helps if you avoid running the paid-off balances back up on cards or other credit lines afterward.
Frequently Asked Questions
How is my potential debt consolidation savings calculated?
This calculator totals your existing debt balances, estimates a blended current monthly payment based on each debt's own rate over a standard comparison period, then compares that to a single new loan payment at your entered consolidation APR and term. The difference is your estimated monthly savings.
What if consolidating actually increases my monthly payment?
This can happen if your new loan term is much shorter than the comparison baseline, or if the new APR isn't meaningfully lower than your blended current rate. In that case, this calculator will show an "Additional Monthly Cost" instead of savings, so you can adjust the term or shop for a better rate.
Is debt consolidation the same as debt settlement?
No. Debt consolidation combines your debts into one new loan that you pay back in full, usually at a lower rate. Debt settlement involves negotiating with creditors to pay less than you owe, which typically damages your credit significantly more than consolidation.
What credit score do I need to consolidate debt?
Lenders offer consolidation loans across a range of credit tiers, but the best rates typically go to borrowers with good to excellent credit (670+). With lower scores you may still qualify, but the APR may not be low enough to produce meaningful savings versus your current debts.
Can a longer loan term make consolidation look better than it is?
Yes. Stretching your new loan over a longer term lowers the monthly payment, which can look like big savings, but you may end up paying more total interest over the life of the loan even at a lower rate. Compare both the monthly payment and the total interest before deciding.
Should I close my credit cards after consolidating?
Closing cards isn't required and can sometimes hurt your credit utilization ratio and credit history length. Many people keep cards open but stop using them for new purchases to avoid rebuilding the debt they just consolidated.
What types of loans can be used for debt consolidation?
Common options include unsecured personal loans, home equity loans or HELOCs (secured against your home), and balance transfer credit cards with a promotional 0% rate. Each has different rates, risks, and qualification requirements, so compare them based on your total debt and credit profile.
Does debt consolidation hurt my credit score?
There's typically a small, temporary dip from the credit inquiry and opening a new account, but consolidation often helps your score over time by lowering your credit utilization ratio and giving you a consistent on-time payment history on a single loan.