🔀 DEBT CONSOLIDATION CALCULATOR
Debt Consolidation Calculator — Is It Worth It?
Compare your current debts to a new consolidation loan. See monthly savings, total interest savings, break-even point, and get a clear verdict on whether consolidation makes financial sense.
Debt Consolidation Calculator
Enter current debts + consolidation loan → get verdict
Current Debts
| Debt Name | Balance | Min Pmt | APR % | |
|---|---|---|---|---|
New Consolidation Loan
✓
Consolidation Saves Money
New rate (12.0%) is below your weighted average (19.2%). You save $17,510 in total interest.
$17,510
Total Interest Saved
📋 Before — Current Debts
- Total Balance
- $18,000
- Monthly Payments
- $402
- Weighted Avg Rate
- 19.2%
- Est. Total Interest
- $21,033
- Number of Debts
- 4
🔄 After — Consolidation
- Loan Amount
- $18,000
- Monthly Payment
- $597.86
- New APR
- 12.0%
- Total Interest
- $3,523
- Loan Term
- 3 yrs (36 mo)
-$195.86/mo
Monthly Savings
$17,510
Interest Saved
No fees
Break-Even
19.2%
Weighted Rate
📊 Total Interest: Current Debts vs Consolidation Loan
📄 Current Debts Breakdown
| Debt | Balance | Min Pmt | APR | Monthly Interest | % of Total |
|---|---|---|---|---|---|
| Visa Card | $5,500 | $110 | 23.0% | $105.37 | 30.6% |
| Mastercard | $3,200 | $64 | 20.0% | $53.31 | 17.8% |
| Personal Loan | $8,000 | $180 | 14.5% | $96.67 | 44.4% |
| Store Card | $1,300 | $48 | 30.0% | $32.49 | 7.2% |
| TOTAL (4 debts) | $18,000 | $402 | 19.2% avg | $287.83/mo | 100% |
When Does Debt Consolidation Make Sense?
Consolidation is worth it when the new loan rate is meaningfully lower than your current weighted average rate, and you can recover any fees quickly. The key questions:
- Is the new rate lower than your weighted average? This is the most important criterion. If your current debts average 18% and you can get a personal loan at 10%, consolidation clearly saves money.
- How long is the break-even? If you pay $500 in fees but save $100/month, break-even is 5 months — excellent. If break-even is 3+ years, reconsider.
- Will you accumulate new debt? Consolidation fails if you pay off credit cards and then max them out again. The behavior change matters as much as the math.
Types of Debt Consolidation
| Option | Typical Rate | Best For | Risk |
|---|---|---|---|
| Personal Loan | 7-25% | Credit card debt consolidation | Rate depends on credit score |
| Balance Transfer Card | 0% intro, then 18-28% | Small balances, good credit | Reverts to high rate; transfer fee 3-5% |
| Home Equity Loan (HELOC) | 5-9% | Large balances, homeowners | Home at risk if you default |
| 401k Loan | Prime + 1% (~6-8%) | Last resort — no other options | Loses tax-deferred growth; early exit penalties |
| Debt Management Plan | Reduced rate by negotiation | Multiple credit cards, struggling | Closes accounts; impacts credit |
— FAQ
Frequently Asked Questions
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