Debt Consolidation Calculator

Calculate monthly payment reduction and interest savings from consolidating multiple high-interest debts into a single personal loan.

Calculator Inputs

$
Sum of balances to consolidate.
%
Current high interest rate.
%
New personal loan rate.
yrs
Term duration (5 yrs = 60 mos).

Calculated Results

Monthly Payment Savings
$145.00 / month ($3,480.00 Total Savings)
New Consolidated Monthly Payment $425.00 / mo
Current Combined Payments $570.00 / mo
Consolidation Loan APR 9.50% APR
Values calculate live as you adjust inputs.

About Debt Consolidation Calculator

Analyzes financial feasibility of replacing multiple high-APR credit balances with a single lower-rate fixed installment loan.

What is Debt Consolidation Calculator?

Analyzes financial feasibility of replacing multiple high-APR credit balances with a single lower-rate fixed installment loan.

How to Use This Calculator

  1. Enter total debt balance.
  2. Enter current high interest rate.
  3. Enter prospective consolidation loan APR and term.
  4. Review monthly cash flow relief and lifetime interest savings.

The Mathematical Formula & Variables

Savings = Current Lifetime Interest - Consolidated Lifetime Interest

Step-by-Step Worked Example

Scenario: $20,000 consolidated from 22% APR to 9.5% APR over 5 years.

  1. New payment = $420.04/mo at 9.5% for 60 months.
  2. Previous monthly payments at 22% = $552.12/mo.
  3. Monthly savings = $132.08; Total 5-year savings = $7,925.

Result: $132.08/mo savings ($7,925 total)

Frequently Asked Questions

Does debt consolidation hurt your credit score?

Applying causes a minor temporary hard inquiry dip, but consolidating typically lowers credit utilization substantially, improving scores significantly over subsequent months.