Debt Consolidation Calculator
Compare the total interest of paying off your current debts versus rolling them into a single consolidation loan. See your new payment and how much interest you could save.
Calculator by Toolsloft ↗- New payment
- $497.70
- Interest saved
- $4,768.35
- New total interest
- $3,889.64
This calculator compares the total interest of paying off your current debt at its existing rate against rolling it into a single consolidation loan. Use it to see your new monthly payment and whether consolidating actually saves money rather than just lowering the payment.
How this is calculated
It simulates your current debt month by month at APR divided by 12 to total its interest, then computes the consolidation loan with the standard amortized payment formula, and reports the difference between the two interest totals as the savings.
How to use
- Enter your total current balance, its APR, and your current monthly payment.
- Enter the rate and term of the consolidation loan you are considering.
- Compare the new payment and total interest against your current path.
Examples
- $20,000 at 19% vs 9% / 48 mo:
save $4,768.35 in interest - New payment:
$20,000 at 9% over 48 mo → $497.70/mo
FAQ
- How does debt consolidation save interest?
- Consolidating replaces high-rate balances with a single lower-rate loan, so less of each payment goes to interest. This tool simulates paying off your current debt at its APR and compares the total interest to the consolidation loan.
- Why is my current payment "too low to ever clear the debt"?
- If your monthly payment is less than the interest that accrues each month, the balance grows instead of shrinking and the debt is never paid off. Increase the payment above the monthly interest to get a result.
- Does a lower payment always mean I save money?
- No. A longer term can lower the monthly payment while increasing total interest paid. Compare the total interest figures, not just the payment, to know if consolidating truly saves money.