Debt Consolidation Calculator

The calculator takes each of your existing debts — their balances, APRs, and monthly payments — and estimates how long it will take to pay them off at your current payment pace. It then compares that to a single new loan at your specified consolidation rate and term, showing you the difference in monthly payments, total interest paid, and payoff timeline.

If the APR on your consolidation loan is lower than the weighted average APR of your current debts, you pay less interest over time. Credit cards often carry rates of 18–25% or more, while a personal consolidation loan may offer rates of 7–12%, resulting in significant savings depending on your balance and term.

The weighted average APR is a single rate that reflects the blended interest cost across all your debts, weighted by each debt's balance. It gives you a fair basis for comparison against your consolidation loan's APR — if the consolidation APR is lower than this weighted average, consolidating will likely save you money.

Applying for a new consolidation loan typically results in a hard inquiry, which may temporarily lower your credit score by a few points. However, consolidating revolving debt (like credit cards) into an installment loan can improve your credit utilization ratio over time, which may benefit your score in the long run.

Focus on unsecured debts with high interest rates — credit cards, store cards, personal loans, and payday loans are ideal candidates. Avoid including secured debts like mortgages or auto loans, or low-rate loans like federal student loans, as consolidating those usually offers little benefit and may come with trade-offs.

Your debt-to-income ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use it to assess your ability to repay a consolidation loan. Most lenders prefer a DTI below 36–43%. A high DTI may result in a higher APR offer or a loan denial.

No. Debt consolidation combines multiple debts into one new loan that you repay in full, typically at a lower interest rate. Debt settlement involves negotiating with creditors to pay less than you owe, which severely damages your credit score and may have tax implications. Consolidation is generally the less harmful option for your financial health.

Yes — stretching out your repayment period can reduce your monthly payment but increase the total interest you pay over the life of the loan. The calculator shows both your monthly savings and total interest so you can weigh the trade-off between short-term cash flow relief and long-term cost.