Debt Consolidation Calculator — Any Currency
Compare paying your cards and loans as they are with one consolidation loan: interest saved or lost, monthly cash flow, origination fee, and the payoff if you keep paying the old amount — in any currency.
| Total debt | — |
|---|---|
| Current payments / months to clear / interest | — |
| Weighted current APR | — |
| Consolidation loan (incl. fee) | — |
| New payment / months / interest + fee | — |
| Monthly cash-flow change | — |
| Total cost difference | — |
| If you keep paying the old amount on the new loan | — |
In short
Consolidating debt saves money only when the new APR is below the weighted average of the debts it replaces and the term is not stretched so far that extra months of interest outweigh the lower rate — $20,000 of cards and a loan at 11.5–24.9% refinanced at 12.5% over 48 months with a 3% fee saves about $3,100, and keeping the old $620 payment on the new loan clears it in 41 months and saves nearly $4,000.
Who this is for: People with several cards and loans deciding whether a consolidation loan or balance transfer actually saves money, in any currency.
When consolidating debt saves money — and when it does not
A consolidation loan replaces several balances with one loan at one rate. It saves money only when two things are true: the new APR is below the weighted average APR of the debts it replaces, and the new term does not stretch repayment so far that the extra months of interest outweigh the lower rate. The calculator amortises each existing debt at its own APR and payment to find what you would pay by just continuing, then prices the loan including the origination fee, and shows both the total-cost difference and the monthly cash-flow change — they often point in opposite directions.
The last row is the trick that makes consolidation work: keep paying the old total payment into the new, cheaper loan. That clears it years earlier and captures the rate saving without the term penalty.
See also: Debt Payoff Calculator — Snowball vs Avalanche, Balance Transfer Calculator, Credit Card Payoff Calculator, Loan APR Calculator — True Cost with Fees.
Assumptions
- Each debt amortised monthly at its own APR with its stated payment; a payment below the monthly interest is flagged as never clearing.
- Consolidation loan = total balances × (1 + fee %), amortised at the new APR over the new term.
- Saving = current remaining interest minus new interest plus fee; cash flow = old total payment minus new payment.
- No new borrowing, fixed rates, no prepayment penalties.
Worked example
Continuing as now: $620 a month, the last debt (the 24.9% card) clears in 58 months, total interest about $9,405. Consolidation: loan $20,600 (fee $600) at 12.5% over 48 months → $548 a month, interest + fee $6,282. Saving about $3,122 and $72 a month of cash flow. Keep paying $620 into the new loan and it clears in 41 months with about $5,416 of interest + fee — a saving near $3,990.
Frequently asked questions
Does debt consolidation hurt my credit score?
A new hard inquiry and a new account dip it briefly; paying off revolving balances lowers utilisation, which usually raises it within a few months.
Loan or balance-transfer card?
A 0% balance-transfer card (typically 3–5% fee, 12–21 months) is cheaper if you can clear the balance in the promo period; a loan suits larger balances and fixed budgets.
What APR do I need to make it worthwhile?
Below the weighted APR shown here — and ideally several points below, to cover the origination fee.
Should I include my car loan or mortgage?
Usually not: secured loans already carry low rates, and consolidating them into unsecured debt raises the rate.
What is a debt management plan?
A non-profit credit counsellor negotiates lower card rates and you make one payment to them; no new loan, but accounts are usually closed.
Why does the calculator show a loss?
Because stretching $20,000 of high-rate debt over 5–7 years at a 'lower' rate can still cost more in total than clearing it in 3 years at the higher rate.
Can I consolidate with a HELOC?
Yes, at a lower rate, but it turns unsecured debt into debt secured on your home — default risks foreclosure.
What credit score do I need?
Most lenders want 640+ for a reasonable rate and 700+ for the advertised lows; below that the rate may exceed your weighted APR.
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