Debt Consolidation Calculator — one loan vs. your current path

How it works

Two paths, computed honestly. The current path simulates your debts as they stand: each accrues its APR ÷ 12 monthly and receives its minimum payment, and the total interest to zero is its cost — if a minimum doesn't even cover its debt's interest, that path never ends and the page says so. The consolidation path rolls every balance plus the fee into one loan amortized at the new rate over the new term: M = P·r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1), and its cost is all payments minus the balances replaced — the loan's interest plus the fee. The signed difference does not pick a winner: a lower rate over a longer term routinely shows a smaller payment and a larger total, which is exactly the trade CFPB warns about, and both numbers stay on screen.

Worked example

The loan side is a published pair: consolidating a single $15,000 balance at 9% over 5 years with no fee pays $311.38 a month (LibreTexts) — the standard amortization this page's loan path runs. On the default scenario — $5,000 at 22% and $4,000 at 18% on $215 of minimums, against a 10% four-year loan with a $300 fee — this calculator computes both totals and their signed difference; the figures are its own simulation for these inputs, and stretching the same loan to seven years lowers the payment while raising its total cost, CFPB's caution rendered as arithmetic.

Frequently asked questions

What is debt consolidation?

Taking one new loan to pay off several debts, so many payments become one — CFPB describes consolidation loans as converting many of your debts into one loan payment, simplifying how many payments you make. The mechanics are ordinary amortization; the judgment is whether the new rate, term, and fee beat what you have.

Does consolidating save money?

Only when the arithmetic says so. CFPB's warning is this page's core: although your monthly payment might be lower, it may be because you are paying over a longer time, which could mean you pay a lot more overall. The signed difference output makes that visible — negative means the consolidation costs more in total despite the smaller payment.

What about balance-transfer offers with 0% rates?

CFPB notes promotional rates last for a limited time and a balance transfer fee usually applies — after the promotion, the rate on unpaid amounts rises. This page models a fixed-rate loan; a teaser-rate transfer needs the post-promotion rate entered to be honest about the full path.

What does the fee input capture?

Origination or transfer charges rolled into the new loan — CFPB cautions that consolidation loans may end up costing more in fees and rising interest rates. The fee both increases the amount amortized and counts directly in the consolidation's total cost, so a "low rate" offer with a heavy fee prices honestly here.

Why does the current path use minimum payments only?

It is the like-for-like baseline: consolidation's pitch is a lower required payment, so the comparison holds each path to its required payments. If you would actually pay extra either way, the debt-payoff calculator prices that plan — paying extra on the current debts often beats consolidating at a mediocre rate.

Are there risks beyond the arithmetic?

CFPB lists them: loans secured by your home can cost the home in foreclosure if unpaid, and many people don't succeed in paying off debt by taking on more debt unless spending also falls. This page computes the dollars; those structural risks sit outside any calculator.

How accurate is this, and what does it exclude?

Exact for fixed rates, fixed minimums, and no new borrowing. It excludes promotional-rate expirations, minimums that recompute as balances fall, credit-score effects, and secured-loan risk. Treat the totals as close estimates and the signed difference — which shares every assumption across both paths — as the robust number.