Debt Consolidation Calculator

Consolidation replaces several high-rate balances with one fixed-rate loan. It saves money only when the new rate and fee cost less than what your current debts would cost on their own — and it can also lengthen or shorten your payoff time. Enter up to three debts and the loan you are offered to see interest saved, payment change and debt-free date side by side.

How does the calculator compare the two paths?

For each current debt it runs your payment against the balance and rate until it is paid off and totals the interest. It then combines the balances into one loan, adds the origination fee, and calculates interest over the new term. The difference is your saving — or extra cost.

When is consolidation a bad idea?

When the new rate is close to your current average rate, when the fee is large, or when a much longer term wipes out the rate advantage. It also does not help if the cards are run back up. Watch the payoff-time and interest lines, not just the lower payment.

What alternatives should I compare?

A 0% balance-transfer card for smaller balances you can clear in 12–21 months, a debt-management plan through a non-profit counselor, or the avalanche method — paying the highest rate first with no new loan.

Worked example

Three cards totaling $17,500 at 20–30% APR with $555 in combined payments would cost about $12,000 in interest and take over five years. A 48-month consolidation loan at 11.9% with a 3% fee has a $474 payment and about $5,300 in interest and fees — saving roughly $6,800 and finishing 15 months sooner.

Frequently asked questions

Does debt consolidation hurt your credit?

A new hard inquiry dips it briefly; paying off cards then lowers utilization, which usually raises it within a few months.

What rate should I look for?

Meaningfully below the weighted average of your current debts — typically 6 to 10 points lower to justify a fee.

Can I consolidate with bad credit?

Yes, but rates may be 25% or more, which often does not save money. Compare carefully.

Is a home equity loan a good consolidation tool?

Rates are lower, but your home becomes collateral. Enter the HELOC rate and term to compare.

Should I close the cards after consolidating?

Keep the oldest open for credit history; consider closing the rest if you are likely to use them.

What happens if a debt's payment does not cover its interest?

The calculator flags it — that debt never pays off on its current path, which is the strongest case for consolidating.

Business financing in Ontario, CA

Consolidating business debt often pairs with a working-capital facility or a line of credit. Explore Aspen Advances programs:

Last reviewed September 09, 2026. Methodology: standard amortization formula. Estimates only — not financial advice or a loan offer.