Debt Consolidation Calculator
Full-lifecycle debt replacement comparison
Compare current debts with one proposed consolidation loan
Result
Calculation summary
Enter values to see the result
Live consolidation preview
Several payments become one modeled loan
- Current debts
- 3 debts
- Current initial monthly payments
- $775.00
- Planned new monthly payment
- $678.32
Total entered fees · $1,250.00
How to use this calculator
- 1Add each debt balance, APR, and fixed monthly payment you would otherwise continue paying.
- 2Enter the proposed consolidation loan rate and term, any extra monthly payment, all fees, how the fees are handled, and whether the new loan is secured.
- 3Compare initial cash flow, payoff time, interest, fees, full-lifecycle cost, and the balance-aware break-even point before evaluating a lender offer.
Formula
Lifetime savings = current-plan interest − (new-loan interest + consolidation fees)
The calculator also compares cumulative payments plus remaining principal every month. Cash-paid fees are added upfront, while financed or deducted fees remain in the new loan balance.
Calculation steps
- Simulate every existing debt independently using its entered fixed payment and monthly APR estimate.
- Detect a debt whose payment cannot amortize its balance instead of inventing a payoff date.
- Determine the proceeds and face amount of the new loan from the selected cash, financed, or deducted fee treatment.
- Amortize the new fixed-rate loan with the selected term and optional extra payment.
- Compare initial payments, payoff dates, total interest, total fees, and lifetime cost.
- Find the first month when the consolidation path's cumulative payments, remaining balance, and upfront cash no longer exceed the current path.
Worked example
Three debts totaling 25,000 are compared with a four-year fixed-rate consolidation loan. A lower payment is not treated as a saving by itself: the model includes the origination fee, the new interest, and any extra months of repayment.
Assumptions
- Existing debts keep their entered fixed monthly payments; paid-off payments are not redirected to another debt.
- Interest uses one nominal annual rate divided into monthly periods; daily interest, compounding conventions, rate changes, and penalty pricing are excluded.
- No new purchases, advances, late fees, missed payments, prepayment penalties, or creditor settlements occur.
- The proposed loan has a fixed rate and level scheduled payment; an entered extra amount is applied every month until payoff.
- A deducted fee means the lender withholds the fees from proceeds, so the face amount is increased enough to deliver the entered payoff balances.
- Tax effects, credit-score changes, approval criteria, opportunity cost, and lender-specific APR disclosures are excluded.
Sources
- What do I need to know about consolidating my credit card debt? — Consumer Financial Protection Bureau
- What is the difference between credit counseling and debt settlement, debt consolidation, or credit repair? — Consumer Financial Protection Bureau
- Do personal installment loans have fees? — Consumer Financial Protection Bureau
Frequently asked questions
Why can the monthly payment fall while total cost rises?
A longer repayment term can spread the balance over more months. Fees and additional months of interest may outweigh the initial monthly cash-flow reduction.
How are financed and deducted fees different?
Financed fees are added on top of the payoff balances. Deducted fees are withheld from loan proceeds, so the face amount must be grossed up to leave enough net proceeds to pay the debts.
What does break-even mean here?
It is the first modeled month when the consolidation path's upfront cash, cumulative payments, and remaining balance are no greater than the equivalent current-debt path.
Why can a current debt show no payoff date?
With a fixed payment at or below the interest being added, the modeled balance does not decline. The tool flags that plan rather than extrapolating a false payoff date.
Does a lower rate guarantee savings?
No. Origination and other fees, a longer term, and fee financing can still make the consolidation loan more expensive overall.
Why is a secured loan flagged?
Moving unsecured debt into a loan backed by a home or other asset can put that collateral at risk if payments are missed.
Does this calculator model debt settlement?
No. It compares paying existing balances as entered with replacing them using a new loan. It does not assume principal forgiveness or advise stopping creditor payments.
Are my debt balances included in shared links?
No. The calculator keeps debt names, balances, rates, payments, and offer details out of the URL and shares only the canonical page plus a result summary.