Debt Consolidation Loan Calculator (Payment + Interest Comparison) | DebtClarityTools
Debt Clarity Tools

Debt Consolidation Loan Calculator

Compare consolidation APR and term to estimate payment and total interest. Consider balance transfer offers and origination fee when evaluating savings.

Consolidation Inputs

Enter total debt, consolidation APR, term, and optional fees.

Tip: Compare total interest and monthly payment before consolidating.

Assumes monthly compounding and steady payments.

Graph

Here's a visual breakdown of your payoff timeline

Results

Your payoff summary updates after calculation.

Estimated payoff time
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Total interest (consolidated)
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Monthly payment
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Total cost (including fees)
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Thinking About Consolidating? Read This First.

The numbers might look good, but consolidation is mistake #4 in this free guide for a reason. Download it before you make any moves.

  • Why consolidating at the wrong time restarts the clock on your debt
  • The question to answer before you apply for anything
  • Instant PDF download — no credit card required
Free Guide Sample
Download My Free Guide →

Managing student loans separately or alongside other debt? Try the Student Loan Planner.

Your Debt Consolidation Results — Monthly Relief vs Total Cost

A lower payment can feel like a win — but the real test is total cost and payoff time.

  • 🧾 Consolidation replaces multiple debts with one loan
    Based on your inputs, consolidation combines balances into a single payment. The benefit comes from a lower effective APR and a clear payoff timeline — not just simplicity.
  • 📉 Lower payments can increase total interest
    Your results show whether the new term stretches repayment longer. A longer timeline can reduce the monthly payment while increasing total interest paid.
  • 🔍 Watch the break-even point
    Micro-example: A lower APR can save money, but extending the term can add cost back. Compare your total interest before vs after — your totals are shown above.

If you want a clear next step based on these results…

Debt Consolidation Mini Guide cover

Before You Consolidate — Read This First.

Your calculator showed the comparison. This guide tells you whether to actually do it — and how to avoid the traps.

The Debt Consolidation Mini Guide ($7) gives you:

  • ✓ The 60-second decision rule: when consolidation saves money vs. quietly costs more
  • ✓ The 4 consolidation mistakes that drain finances (and how to dodge them)
  • ✓ How to check total interest — not just monthly payment — before you sign
  • ✓ What to do with your credit cards after consolidating (most people get this wrong)
  • ✓ A 30-day stabilization plan to make consolidation actually work
Unlock the Mini Guide ($7)
Instant PDF download • Slide-in checkout • No subscription

For educational planning only — not financial advice.

How Debt Consolidation Works — And When It Helps

Consolidation Only Helps When the Math Improves

Debt consolidation replaces multiple balances with one new loan or credit product. It helps when it lowers your effective interest rate, keeps (or shortens) your payoff timeline, and makes the payment easier to manage without adding new debt.

The Two Biggest Hidden Costs

The most common consolidation trap is extending the repayment term. A longer term can reduce the monthly payment while increasing total interest. The second trap is fees (origination, balance transfer fees, closing costs) that reduce or erase savings.

What to Compare Before You Commit

Compare the APR, total interest, total fees, and the payoff date. If the new loan lowers stress but increases total cost significantly, pause and re-check your options.

Ready to act on what you just learned? The step-by-step mini guide gives you a 10-minute action plan based on your results.

Get it for $7 →

FAQ

Is debt consolidation a good idea for my situation?
Debt consolidation can make sense if you qualify for a lower interest rate and avoid extending the repayment term too much. This calculator helps you compare your current debts to a consolidation option so you can see if it actually saves money.
How does the debt consolidation calculator work?
The calculator compares your existing balances, interest rates, and payments to a proposed consolidation loan or balance transfer. It shows differences in payoff time and total interest paid.
Will debt consolidation lower my total interest paid?
It can, but not always. Consolidation saves interest only if the new rate is lower and the loan term isn’t significantly longer. This calculator highlights whether savings come from a lower rate or just a longer timeline.
What’s the difference between a debt consolidation loan and a balance transfer?
A consolidation loan replaces multiple debts with a single installment loan. A balance transfer typically moves credit card balances to a card with a promotional low or 0% APR for a limited time. Each option has different fees, risks, and timelines.
Does consolidating debt lower my monthly payment?
Sometimes. Monthly payments may drop if the term is extended, but that can increase total interest. This calculator shows whether a lower payment actually costs more over time.
What fees should I consider before consolidating?
Common fees include loan origination fees, balance transfer fees, and potential closing costs. These fees should be included when comparing options, as they can offset interest savings.
Can debt consolidation hurt my credit score?
It can temporarily affect your score due to new credit inquiries or account changes. Over time, consistent payments and lower utilization can improve your score if consolidation is managed carefully.
What’s the biggest risk of debt consolidation?
The biggest risk is accumulating new debt after consolidating. If spending habits don’t change, consolidation can lead to a higher total debt balance rather than progress.
Free Guide: 5 Debt Payoff Mistakes to Avoid

Still here? That means you're serious about getting out of debt.

Most people use the calculator and leave. You stayed. This free 7-page guide is for people like you — it covers the 5 mistakes that quietly kill payoff progress before it even starts.

  • The mistake that keeps balances high even with consistent payments
  • Why most people pick the wrong starting point
  • What to fix before you change anything else
  • Instant PDF — no credit card, no account required
Download My Free Guide →