Debt Consolidation Calculator

The Debt Consolidation Calculator can determine whether it is financially rewarding to consolidate debts by comparing the APR (Annual Percentage Rate) of the combined debts with that of the consolidation loan. APR is the fee-adjusted financial cost of a loan, providing a more accurate basis for loan comparisons. The calculated results will also display comparisons such as the monthly payment, payoff length, and total interest.

Modify the values and click the calculate button to use
  Debt name Remaining balance Monthly or min. payment Interest rate

Consolidation loan
Loan amount 
Interest rate 
Loan term
Loan fee/points

RelatedDebt Payoff Calculator | APR Calculator

Debt Consolidation

Debt consolidation is a form of debt restructuring that combines several loans into one, mainly for two reasons: to lower either the interest rate or to lower the monthly payment amount. With a good consolidation loan, it is possible to lower both. Another possible reason people consolidate loans is simplicity; instead of dealing with multiple different loans, debts, and payments each month, a consolidated loan only requires one, relieving hassle and saving time.

Most loans will require the payment of upfront fees. As a result, the real cost (real APR) of loans is higher than the interest rates advertised by lenders. This calculator can determine the real APR of consolidated loans after adjusting for applicable fees, which is the more accurate and comparable indicator of the financial cost of a loan.

Home equity loans, home equity line of credits, and cash-out refinances are common sources of funds used for debt consolidation. These are secured loans that are tied to collateral, such as real estate properties, generally lower risk for lenders, which lowers interest rates. On the other hand, unsecured loans can also be used to consolidate debts, such as personal loans or balance-transfer credit cards. They tend to have higher interest rates and lower loan limits because there is no collateral attached to them.


Before consolidating loans, there are some considerations to keep in mind.

Fix the Real Problem First

While effective loan consolidation can possibly lower the financial burden, it is worth considering tackling the root of the burdens first, whatever it may be. For many people, this is a change in habits such as spending less and saving more. For others, it may be a journey towards learning how to live within or below their means. In some cases, it can even be seeking a higher income. These are few examples of methods that will be more effective in the long term in erasing debt, as opposed to just simply consolidating them. In any case, budgets are practical ways to sort financial situations before the question of whether or not to consolidate loans pops up.

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