Debt consolidation calculator

Thinking about rolling several debts into one loan? This calculator compares keeping your current debts against one consolidation loan at the rate you were quoted — at the same monthly payment — so you can see the total interest, the payoff time, and whether consolidating actually saves you money. Everything runs in your browser; we never see or store your numbers.

How the comparison works

Debt consolidation replaces several balances with a single new loan. It only lowers your cost when the new rate beats your current blended rate — the balance-weighted average APR across all the debts you'd pay off. This tool computes that blended rate from your inputs, then runs both paths at the same monthly payment so the comparison is fair: a lower payment always looks "cheaper" month to month, but stretches the debt and adds interest, so equal-payment is the honest test.

Two things decide whether a loan helps: the rate you actually qualify for (driven by your credit) and any origination fee, which is added to the amount you finance. A 5% fee on a $20,000 loan is $1,000 of extra principal — enough to erase the benefit of a small rate improvement. The calculator folds the fee into the loan so the numbers reflect what you'd really pay.

When consolidation helps — and when it doesn't

Consolidation tends to help borrowers with fair-to-good credit who are carrying high-APR credit cards and can get a fixed personal-loan rate well below them — and who then stop charging on the cleared cards. It tends not to help when the best rate offered isn't much lower than what you already pay, when a large origination fee eats the savings, or when the balances are simply too large to repay on any realistic schedule.

If the tool shows a loan saving little or nothing, don't force it. A nonprofit debt management plan can often reduce interest without a new loan, and for unsecured balances you truly can't repay, debt settlement may be an option — though it is not guaranteed, can lower your credit score, and a forgiven balance over $600 may be reported on a 1099-C as taxable income. We explain each route plainly before you choose.

Frequently asked questions

Does consolidating my debt reduce what I owe?

No. A consolidation loan pays off your existing balances and replaces them with one new loan — you still owe the full principal. It can lower your cost only if the new interest rate (after any origination fee) is below the blended rate you pay now. If the new rate is the same or higher, you'd simply be moving the debt around, which is why this calculator compares both paths at the same monthly payment.

When is a consolidation loan a good idea?

When you can qualify for a rate clearly below your current blended APR, the loan has low or no origination fee, and you stop adding new charges to the cards you pay off. Folding several payments into one fixed monthly amount also makes the payoff easier to track. It works best for borrowers with fair-to-good credit; if your credit is damaged, the rate offered may be too high to help.

What if I can't qualify for a low enough rate?

Then consolidation may not be the answer. The calculator will show the loan costing as much as — or more than — keeping your debts. At that point a nonprofit debt management plan (which can lower your interest without a new loan) or, for unsecured balances you genuinely can't repay, debt settlement may be worth comparing. Settlement is not guaranteed, can hurt your credit, and a forgiven balance over $600 can be taxable, so weigh the trade-offs first.

Will checking consolidation loan rates hurt my credit score?

Pre-qualifying on a loan marketplace uses a soft credit check, which does not affect your score. A hard inquiry only happens if you formally apply with a lender. Comparing pre-qualified offers first lets you see your real rate before any hard pull, so you can confirm whether the numbers in this estimate hold up for you.