Debt consolidation calculator
Does a debt consolidation loan beat what you pay now? Compare them side by side, fee included, and find the highest rate that still saves you money.
Your numbers
Your result
Savings compared with keeping the payments you make now on each debt.
Side by side
“Now” means keeping the payments you make today until each debt is gone.
| Item | Now | With loan |
|---|---|---|
| Monthly payment | $324 | $387 |
| Debt-free by | Jun 2032 | Nov 2029 |
| Interest | $7,913 | $2,605 |
| Fees | $0 | $566 |
| Total you’ll pay | $18,663 | $13,921 |
Cost of borrowing
Interest plus fees. Lower is better.
The fair test
If you paid $387 a month on today’s debts instead (highest rate first), you’d be debt-free by May 2030 and pay $16,091 in total. The loan’s lower rate saves $2,170 on top of that.
Break-even rate
- 36.01%With a 36-month loan and a 5% fee, any rate below this costs less in total than keeping your current payments.
Compare this with the APR on any offer you get. APR already includes the fee; this page asks for the interest rate and fee separately.
Estimates only, based on the numbers you enter. Assumes fixed rates, no new charges on the old accounts, no late or prepayment fees and payments made on time. A lender sets your real rate and fee after checking your credit. This is not financial advice.
How this calculator works
We work out two plans and compare what each one costs in total.
- Keep paying what you pay now. Every debt keeps its own monthly payment until it's gone. Each month we add interest (balance × APR ÷ 12) and take off the payment. When one debt is paid off, its payment stops; it isn't moved to the others.
- Take the consolidation loan. If the lender takes an origination fee out of the loan, you have to borrow a bit more so every balance is still paid in full. Then you make one fixed payment for the whole term.
Monthly payment = loan × r ÷ (1 − (1 + r)−n), where r = APR ÷ 1200 and n = months
Savings = total paid on your current debts − total paid on the loan
A bigger payment clears debt faster whether or not you consolidate, so we also run the fair test: the loan's monthly payment put toward the debts you have now, highest rate first, with each paid-off debt's payment rolling on to the next. The gap between that and the loan is what the lower rate is really worth.
The break-even rate is the highest loan rate, for the term and fee you chose, at which the loan still costs no more in total than keeping your current payments.
Worked example
Three cards totaling $10,750 (a $6,200 Visa at 24.99%, a $1,450 store card at 29.99% and a $3,100 Mastercard at 22.99%), with $324 a month going to them now. Every loan below has a 5% origination fee:
| Plan | Monthly payment | Months | Interest + fees | Total paid | Savings |
|---|---|---|---|---|---|
| Keep paying now | $324 | 67 | $7,913 | $18,663 | — |
| 10.99% loan, 36 months | $370 | 36 | $2,585 | $13,335 | $5,328 |
| 13.99% loan, 36 months | $387 | 36 | $3,171 | $13,921 | $4,742 |
| 17.99% loan, 36 months | $409 | 36 | $3,975 | $14,725 | $3,937 |
| 13.99% loan, 60 months | $263 | 60 | $5,044 | $15,794 | $2,868 |
Look at the last row: a longer term brings the payment below what you pay now, but much of the saving disappears.
Questions
Should I consolidate my debt with a loan?
Only if it saves money: when the loan's total cost, interest plus fees, is lower than finishing your current debts. That usually means a rate well below your cards' rates and a term that isn't much longer than you'd need anyway. Recent Federal Reserve data put the average 24-month personal loan at a commercial bank near 12% APR, against about 22% on credit card accounts that pay interest.
Why do I have to borrow more than I owe?
Many lenders take the origination fee out of the loan before they send the money. To pay off $10,000 with a 5% fee, you'd borrow $10,526.32: the lender keeps $526.32 and you get $10,000. You pay interest on the full amount.
What's the difference between the rate and the APR on my offer?
The interest rate sets your monthly payment. The APR also counts fees such as the origination fee, so it's the better number for comparing offers. Enter the interest rate and the fee here, then compare the break-even rate with the APR on your offer.
Is a 0% balance transfer card better?
It can be, if you can clear the balance before the promotional rate ends and the transfer fee is smaller than the interest you'd save. Try your numbers in the credit card payoff calculator with the card's normal rate to see the cost if you don't finish in time.
What should I watch out for?
Running the old cards back up after you consolidate, which leaves you with the loan and new card debt. And companies that advertise "debt consolidation" but are really debt settlement companies: the CFPB warns they may tell you to stop paying your debts, which can add fees and damage your credit.
Is my information saved anywhere?
No. The math runs in your browser and nothing you type is sent to us.