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Compare multiple debts with one consolidated loan to estimate your new monthly payment, total interest and potential savings. See whether debt consolidation could reduce your costs and simplify your repayments.

Debt Consolidation Calculator

How to Use This Debt Consolidation Calculator

Use the calculator to compare your existing debts with a new consolidation loan and see how your repayments and overall costs could change.

1. Enter your current debts
Add the balance, interest rate and monthly payment for each debt. Use + Add Debt if you have multiple accounts.

2. Enter the consolidation loan details
Add the new loan’s interest rate, repayment term and any upfront fees.

3. Click Calculate
The calculator will compare your current debts with the consolidation loan.

4. Review your results
Compare your current monthly payments, new estimated payment, total interest and potential savings.

Tip: A lower monthly repayment doesn’t always mean a cheaper loan. A longer term can reduce your monthly payment while increasing the total interest you pay.

Understanding Your Debt Consolidation Results

Your results compare the estimated cost of keeping your current debts with the cost of replacing them with a new consolidation loan.

Total Current Debt — The combined outstanding balance of all debts entered.
Current Monthly Payments — The total you currently pay toward those debts each month.
New Monthly Payment — Your estimated monthly repayment on the consolidation loan.
Monthly Savings — The estimated difference between your current payments and the new monthly payment.
Current Debt Payoff Cost — The estimated total amount you would pay if you continued with your existing debts.
Consolidated Loan Total Cost — The estimated total amount you would repay on the new loan, including applicable fees entered.
Total Savings / Extra Cost — Shows whether consolidation could cost less or more overall compared with keeping your current debts.

Important: A lower monthly payment does not necessarily mean you will save money overall. Extending the repayment term can lower your monthly payment while increasing the total interest paid.

Disclaimer

This debt consolidation calculator provides estimates for general informational purposes only. Actual repayments, interest rates, fees and loan terms may differ. Check the terms offered by your lender before making a borrowing decision.

What Is Debt Consolidation?

Debt consolidation means combining multiple debts into one new loan or repayment. Instead of managing several balances, interest rates and payment dates, you make one regular payment.

It is commonly used to combine debts such as credit cards, personal loans and other outstanding balances.

Debt consolidation may make your finances easier to manage and could reduce the amount of interest you pay if the new loan has a lower rate or better terms.

However, consolidation does not automatically save money. Fees, interest rates and a longer repayment term can increase the total cost, even when the new monthly payment is lower.

Use the Debt Consolidation Calculator above to compare your current debts with a potential consolidation loan before deciding whether consolidation could work for you.

Benefits of Debt Consolidation

Debt consolidation can offer several potential benefits when the new loan has suitable rates, fees and repayment terms.

Simpler repayments
Combine several debts into one regular payment, making your finances easier to manage.
Potentially lower interest costs
If your consolidation loan has a lower interest rate than your existing debts, you may reduce the amount of interest you pay.
Easier monthly budgeting
Having one predictable repayment can make it easier to plan your monthly expenses.
Clear repayment timeline
A fixed loan term gives you a clearer idea of when the debt could be fully repaid.
Fewer accounts to manage
Replacing several debts with one loan can mean fewer balances, due dates and repayments to keep track of.

Keep in mind: Debt consolidation is most beneficial when it reduces your overall borrowing costs. Always compare the interest rate, fees, loan term and total amount repayable, not just the monthly payment.

Risks of Debt Consolidation

Debt consolidation can simplify your repayments, but it is important to understand the potential downsides before taking out a new loan.

Higher total interest
A longer repayment term can lower your monthly payment but may increase the total interest you pay over the life of the loan.
Fees can reduce your savings
Application fees, establishment fees, early repayment charges or ongoing fees can make consolidation more expensive than expected.
You could build up more debt
Paying off credit cards through consolidation does not prevent you from using them again. New spending could leave you managing both the consolidation loan and new debt.
A lower monthly payment isn't always cheaper
Compare the total amount repayable, not just the new monthly payment.
You may not qualify for a better rate
The interest rate offered will depend on factors such as your credit profile, income, existing debts and the lender's requirements.

Before consolidating: Compare the new loan's interest rate, fees, repayment term, monthly payment and total cost with what you would pay by keeping your existing debts.

When Does Debt Consolidation Make Sense?

Debt consolidation may be worth considering when it makes your debt easier to manage and improves the overall cost or structure of your repayments.

It may make sense if:

You have multiple high-interest debts, such as credit cards or personal loans.
You can qualify for a lower interest rate than you currently pay.
You want to combine several repayments into one easier-to-manage payment.
The new loan's fees and total repayment cost are lower than keeping your existing debts.
You want a clear repayment schedule with a defined payoff date.
The new monthly repayment fits comfortably within your budget.

Before deciding: Use the Debt Consolidation Calculator to compare both the monthly payment and total cost. A consolidation loan with a lower monthly payment may still cost more overall if the repayment term is significantly longer.

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When Debt Consolidation May Not Be the Best Option

Debt consolidation may not be the right choice if:

You cannot qualify for a lower interest rate.
Fees and charges outweigh the potential interest savings.
A longer loan term would cause you to pay more overall.
The new monthly repayment does not comfortably fit your budget.
You are likely to build up new debt after consolidating existing balances.
You are already close to paying off your current debts.

Before consolidating, compare the monthly repayment, interest rate, fees, loan term and total amount repayable.

Example: Consolidating Two Credit Cards

Suppose you have two credit card balances:

Credit Card 1: $5,000 at 18% interest
Credit Card 2: $3,000 at 22% interest
Total debt: $8,000

You are considering replacing these balances with a consolidation loan at:

Interest rate: 10%
Loan term: 36 months
Loan amount: $8,000

If there are no additional fees, the new loan would have an estimated monthly repayment of about $258 and total repayments of approximately $9,293 over three years.

Whether this actually saves you money depends on how quickly you would otherwise repay the two credit cards, their ongoing interest rates and any fees charged on the consolidation loan.

The key comparison: Don't look only at the lower interest rate. Compare the total cost of keeping your existing debts with the total cost of the consolidation loan.

Use the Debt Consolidation Calculator above with your own balances, rates and payments to compare the two options.

Related Calculators

Want to compare other ways to manage or repay your debt? Try these free calculators:

Credit Card Payoff Calculator — Estimate how long it could take to pay off your credit card and how much interest you may pay.
Debt Snowball Calculator — See how paying your smallest debts first could affect your payoff timeline.
Debt Avalanche Calculator — Compare paying your highest-interest debts first to potentially reduce interest costs.
Loan Repayment Calculator — Estimate monthly repayments, total interest and the overall cost of a loan.
Personal Loan Calculator — Compare repayment estimates for a potential personal loan.

Frequently Asked Questions

1. What is a debt consolidation calculator?

A debt consolidation calculator compares your existing debts with a potential consolidation loan. It can estimate your new monthly payment, total repayment cost and whether consolidation could save or cost you more overall.

2. How does debt consolidation work?

Debt consolidation involves combining multiple debts into one new loan or repayment. The new loan is generally used to pay off the existing debts, leaving you with one regular payment to manage.

3. Does debt consolidation save money?

It can, but not always. You may save money if the new loan has a lower interest rate and reasonable fees. However, a longer repayment term can increase the total interest you pay even if your monthly payment is lower.

4. What debts can I consolidate?

Depending on the lender and loan product, consolidation may be used for debts such as credit cards, personal loans and other eligible outstanding balances. Always check which debts your lender allows you to consolidate.

5. Is a lower monthly payment always better?

No. A lower monthly payment can make your budget easier to manage, but it may result from extending the loan term. This could mean paying more interest overall, so compare the total repayment cost as well.

6. What should I compare before consolidating debt?

Compare the new interest rate, monthly repayment, loan term, upfront and ongoing fees, and total amount repayable. These figures give you a better picture of whether consolidation is actually worthwhile.

7. Can debt consolidation affect my credit score?

Applying for a new consolidation loan may involve a credit check, and opening or closing credit accounts can affect your credit profile. The exact impact depends on your circumstances and how you manage your repayments afterward.

8. Are the calculator results exact?

No. The results are estimates based on the information you enter. Actual interest rates, fees, repayments and loan terms can differ, so confirm the final figures with your lender before making a borrowing decision.