Debt Consolidation Calculator - Payment Savings

Compare current debt payments with a consolidation loan, including transfer fees and the new term. Check monthly savings before you refinance.

Enter current balance, rate, and remaining months, then the consolidation rate, term, and any transfer fees to compare monthly payments.

Debt Consolidation Calculator - Payment Savings
New payment amortizes (balance + fees) over the consolidation term. Current payment amortizes the balance over the remaining term.

About the debt consolidation calculator

Debt consolidation replaces several high-rate balances, or one expensive loan, with a single installment loan or transfer. The monthly payment can fall because the rate is lower, because the term is longer, or both. Only a lower rate reduces interest for sure; stretching the term can cut the payment while increasing total interest. The debt consolidation calculator amortizes your current debt and the proposed loan so you can see the new payment and the monthly difference before you refinance. Both sides use the standard installment formula with a monthly rate equal to APR / 1,200. The current payment uses the existing balance, current APR, and remaining months. The consolidation payment uses balance plus transfer or origination fees, the new APR, and the new term in months. $15,000 at 18% with 36 months left costs about $542.29 a month; the same principal at 10% for 36 months is $484.01, a $58.28 monthly cut with no fees. Financing $400 of fees on a $20,000 loan raises the new principal and the new payment. Use the comparison when a credit union, personal-loan offer, or 0% transfer is on the table. Check whether savings come from rate or from a longer term. A 48-month consolidation of a 24-month remainder can look cheap monthly and still cost more interest. Add fees to principal if they are financed; if you pay fees in cash, leave the fee field at zero and treat the cash as a separate cost. The model assumes fixed rates, monthly amortization, and that the current “rate and remaining term” are a reasonable stand-in for several cards. Revolving minimums are not true amortizing payments, so the current side is an estimate if you entered a blended APR and an assumed payoff window. Variable-rate loans, prepayment penalties, and losing promotional rates after a transfer window are outside the formula. Recalculate when any rate, term, or fee changes, and compare total of payments (payment × months) as well as the monthly figure. If the new loan lasts longer, monthly savings can coexist with a higher lifetime cost. Confirm closing costs, whether old accounts will be paid in full, and whether you will close the cards that created the balances. The consolidation payment is the planning number; the discipline after closing is what actually reduces debt.

Debt consolidation examples

The result is the new amortizing payment on balance plus fees. Notes show the current payment for comparison.

InputsNew paymentNote
$15,000 at 18% for 36 months vs 10% for 36 months$484.01Current payment $542.29; monthly difference $58.28 with no fees.
$8,000 at 15% for 24 months vs 8% for 24 months$361.82Current payment $387.89; same term, lower rate.
$20,000 at 19% for 48 months vs 12% for 48 months with $400 fees$537.21Fees are added to principal; current payment would be $598.00 without consolidation.

How to compare a consolidation loan

  1. Enter the total balance you would refinance and the current APR and remaining months.
  2. Enter the consolidation APR and term in months.
  3. Enter transfer or origination fees if they will be financed; otherwise enter 0.
  4. Select Calculate Consolidation Payment and compare the new payment with the current payment.

Debt consolidation FAQ

How is the consolidation payment calculated?

The new loan amortizes balance plus financed fees at the consolidation APR over the new term in months. The current payment uses the same formula on the existing balance, current APR, and remaining months.

Do transfer fees always raise the payment?

They do if you roll them into the new loan, because principal is higher. If you pay fees in cash, leave fees at zero and treat that cash as an upfront cost instead.

Can a lower payment cost more interest?

Yes. Extending the term cuts the monthly amount even when the rate barely changes. Multiply each payment by its number of months to compare lifetime cost.

Is a 0% balance transfer included?

Enter 0 as the consolidation rate and the promotional term in months. When the promo ends, the rate may jump; rerun the calculator at the go-to rate if any balance will remain.

Should I close the old cards after consolidating?

Closing them can hurt utilization and age of credit. Paying them off and leaving them open with a zero balance is often better, but only if you will not reuse the credit and rebuild the same debt.