Debt Consolidation Calculator
Compare your current separate debts against a single consolidated loan side by side, including total monthly payment and total interest.
Calculator verified • Last updated: August 2026
Your Debts
Debt 1
Debt 2
Debt 3
Consolidated Loan
Separate vs. Consolidated
| Metric | Separate Debts | Consolidated Loan |
|---|---|---|
| Total Monthly Payment | — | — |
| Total Interest Paid | — | — |
—
One or more of your minimum payments is too low to cover that debt's interest — its balance would grow instead of shrinking. Its interest is excluded from the Separate total below.
The origination fee reduces your net proceeds below the amount needed to pay off all the debts listed — you'd need to cover the shortfall separately (or borrow slightly more) to fully pay them off.
Total Interest Comparison
Total interest is what you'll actually pay on top of your balances under each path — the consolidated bar is lower whenever the new rate saves more than a longer term costs.
How Debt Consolidation Is Compared
Debt consolidation combines several separate debts into one new loan, ideally at a lower rate or a more manageable single payment. This calculator sums up your listed debts' monthly payments and simulates each one's payoff at its own minimum payment to estimate total interest, then compares that against a single consolidated loan at your new rate and term. Add or remove debts with the buttons above the debt list — the comparison updates for however many you list.
B: the combined balance of all the debts you list.
r: the new loan's monthly interest rate (annual rate divided by 12).
n: the new loan's term in months.
Each separate debt's total interest is estimated by simulating its payoff month by month at its own minimum payment, since a fixed minimum payment against a shrinking balance has no simple closed-form total-interest formula.
Worked Example
Three debts — 5,000 dollars at 18% with a 150-dollar payment, 3,000 dollars at 22% with a 100-dollar payment, and 2,000 dollars at 15% with a 60-dollar payment — add up to a combined 10,000-dollar balance and a 310-dollar total monthly payment. Paid off separately at those minimums, they cost roughly 3,982 dollars in total interest. Consolidated into a single 10,000-dollar loan at 10% over 5 years, the new payment is about 212 dollars per month, with total interest of roughly 2,748 dollars — a lower monthly payment and about 1,234 dollars less in total interest.
When Consolidation Helps, and When It Doesn't
Consolidation tends to help most when your current average rate (weighted by balance) is meaningfully higher than the new rate you'd qualify for, since a lower rate reduces interest even if the term stays similar. It can backfire when the new term is much longer than needed just to make the monthly payment look smaller — total interest can end up higher even at a lower rate if the loan is stretched out long enough.
Common Debt Consolidation Mistakes
Focusing only on the lower monthly payment without checking total interest is the most common mistake — a longer term almost always lowers the payment, but it can raise the total cost. Consolidating and then continuing to add new charges to the original credit cards is another frequent trap, since it can leave someone paying both the new consolidated loan and fresh balances on the cards that were supposed to be paid off.
Debt Consolidation Terms You Should Know
Consolidation Loan — a single new loan used to pay off multiple existing debts, replacing several payments with one.
Weighted Average Rate — the combined interest rate across several debts, weighted by each balance, a useful benchmark to compare against a new consolidated rate.
Minimum Payment — the smallest required monthly payment on a debt; paying only the minimum extends payoff time and increases total interest.
Origination Fee — a one-time fee some lenders deduct from the new consolidation loan's proceeds before disbursing funds. It doesn't change the consolidated monthly payment shown above — that's still calculated on the full combined balance — but it reduces how much cash you actually receive, shown as "Amount You'll Actually Receive." If the fee is large enough, your net proceeds can fall short of what's needed to pay off all the debts you're consolidating; this calculator flags that case rather than trying to solve for a larger loan amount automatically.
This calculator provides estimates for educational and planning purposes only. Actual loan terms, fees, and approval depend on your lender and credit profile. Consult a qualified financial advisor for guidance specific to your situation.
Frequently Asked Questions
Does debt consolidation reduce how much I owe?
No — consolidation combines what you already owe into one new loan. It can lower your total interest and monthly payment if the new rate is meaningfully lower than your current average rate, but the underlying balance you owe doesn't shrink just from consolidating it.
What if my consolidated rate is higher than some of my current debts?
Then consolidating could cost you more in total interest on that portion of the balance, even if the monthly payment looks lower because the term is longer. Compare both total interest and monthly payment before deciding, not the monthly payment alone.
What happens if a minimum payment can't cover the interest?
The balance grows instead of shrinking, since none of the payment is left over to reduce principal after interest is covered. This calculator flags that case for any debt where it applies — it's a strong signal that debt needs a higher payment or a lower rate before it can realistically be paid off.
Does an origination fee on the consolidation loan change my monthly payment?
No — the origination fee is deducted from the new loan's proceeds at disbursement, not from the monthly payment, which is still calculated on the full combined balance. The fee only reduces how much cash you actually receive — if it's large enough, that net amount can fall short of what's needed to pay off all the debts you're consolidating, which this calculator flags.
What if I have more than 3 debts to consolidate?
Use the "+ Add Another Debt" button to add as many debts as you need, or the Remove button on a row to take one out. The comparison, chart, and total interest figures automatically recalculate for however many debts you've listed.