Debt Consolidation Calculator

Debt consolidation comparison used here

The current path estimates payoff time from the combined balance, blended APR, and current monthly payment. The proposed path uses the fixed-payment amortization formula to calculate a level payment from the consolidation balance, new APR, and term. Interest savings equal estimated interest on the current path minus interest on the proposed loan. Because the calculator does not add origination, transfer, or prepayment fees, those costs should be added separately before treating a positive result as real savings.

Current debt versus a new loan

A combined $18,000 balance at a 22% blended APR with a $550 monthly payment takes about 51 months to repay and produces roughly $9,740 of interest in this model. Replacing it with a four-year loan at 11% creates a payment near $465 and about $4,331 of interest before fees. The new loan lowers both payment and modeled interest in that scenario, but a large origination fee or renewed card spending would reduce or erase the benefit.

Compare the whole consolidation offer

• Use a balance-weighted APR for the current debts, or run each account separately when rates and minimum payments differ substantially.
• Add every origination fee, transfer fee, insurance product, and early-payoff charge shown in the offer before comparing total cost.
• A consolidation loan does not eliminate the old spending pattern. A workable payoff plan usually includes keeping the paid-down cards from rebuilding balances.