Does consolidating always save money?

Savings depend on the new APR, term, and fees versus your current debts. This calculator reveals the break-even point so you can decide.

What if one debt payment is too low?

If a payment is below monthly interest, the balance grows (negative amortization). Increase the payment amount to obtain a valid payoff schedule.

Should I finance the origination fee?

Financing the fee adds it to the loan principal and increases overall interest. Paying upfront usually costs less if cash flow allows.

Debt Consolidation Calculator

Compare the cost of staying with your current debts versus combining them into one consolidation loan. See new payments, interest savings, and payoff timelines before you apply.

Author: Ugo Candido Reviewed by: Finance Content Editor Last updated: Category: Finance → Loans & Debt

Currency

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Your current debts

Add each debt you plan to consolidate with its balance, APR, and monthly payment.

Consolidation loan

Loan APR (%) *

Term (months) *

Origination fee (%)

Fee handling

Financed (added) Paid upfront

Financing the fee increases the new loan balance and interest. Paying upfront keeps the balance lower.

Results

Current monthly payments $0.00

Consolidation payment $0.00

Monthly cash flow change $0.00

Interest (keep current plan) $0.00

Interest (consolidation) $0.00

Interest savings $0.00

Debt-free with current plan 0 months

Debt-free with consolidation 0 months

Total principal consolidated $0.00

Ready to calculate

Data Source and Methodology

The calculator uses the standard amortization identity referenced by the Consumer Financial Protection Bureau (CFPB) and Truth in Lending (Regulation Z) Appendix J. Each debt is amortized separately using your specified payment; the consolidation loan uses the APR and term you enter. Origination fees can be financed (added to the new loan amount) or paid upfront.

Formulas Used

Monthly rate: $ r = \dfrac{\text{APR}}{12 \times 100} $

Months to pay a debt: $ n = \dfrac{-\ln\left(1 - \dfrac{rB}{P}\right)}{\ln(1+r)} $ if $ r > 0 $; otherwise $ n = \dfrac{B}{P} $

Interest paid on a debt: $ I = n \cdot P - B $

Consolidation payment: $ P_c = \dfrac{L r_c}{1 - (1 + r_c)^{-N}} $ (or $ L/N $ if $ r_c = 0 $)

Tips before consolidating

Verify that the new APR and term truly lower total interest, not just monthly payments.
Look out for origination fees or prepayment penalties on existing debts.
Consider continuing to pay extra principal even if the new payment is lower to accelerate payoff.