Debt Consolidation Calculator
Compare the cost of keeping separate debts versus combining them into one personal loan
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Debt Consolidation Calculator
Should You Consolidate? Find Out in 60 Seconds
Assumes you maintain current minimum payments on existing debts. Actual payoff varies with payment changes.
Key Takeaways
- Consolidating $9,000 in credit card debt (weighted average 23% APR) into a personal loan at 11% APR for 36 months saves roughly $3,400 in interest and pays off the debt about 7 years sooner.
- The calculator pre-loads three sample debts (two credit cards and a store card). Replace these with your actual balances, APRs, and monthly payments for a personalized comparison.
- The break-even analysis shows how many months it takes for your monthly savings to recoup the origination fee — typically 3–8 months for a 3% fee.
- Consolidation works best when your new loan APR is meaningfully lower than your weighted average credit card APR. A difference of 5+ percentage points usually guarantees savings.
- The visual timeline at the bottom shows at a glance how much sooner you become debt-free with a consolidation loan versus making minimum payments on separate cards.
How to Use This Calculator
This calculator compares the total cost and payoff timeline of keeping your existing debts separate versus combining them into a single consolidation loan. It handles up to six individual debts and accounts for origination fees.
Step 1 — Enter your current debts. The calculator starts with three sample debts. Click the × button to remove any, or click "Add Another Debt" to add more (up to six total). For each debt, enter the current balance, the APR on that account, and the amount you actually pay each month. Minimum payments are fine — that is what shows the most dramatic payoff difference.
Step 2 — Set your consolidation loan terms. Enter the APR you expect to qualify for on a personal loan. The default is 11%, which is achievable for borrowers with good credit (680+). Check our prequalification guide to find your actual rate before comparing. Choose a term (24–60 months) and enter the origination fee percentage if applicable.
Step 3 — Compare the results. The VS panel shows both options side by side: total monthly payment, APR, total interest, payoff timeline, and total paid. The winner gets a green border and checkmark badge. Below that, the payoff timeline bars visualize the time difference, and the break-even box shows when your savings exceed the origination fee.
Understanding the Results
The key metric is not the monthly payment difference alone — it is the total cost comparison. Credit cards with minimum payments that decrease as the balance drops can take 10–20 years to pay off, generating enormous interest charges along the way. A consolidation loan with fixed payments over 36 months forces faster repayment, which is where most of the savings come from.
The break-even month matters when the consolidation loan has an origination fee. Until your cumulative monthly savings exceed the fee, you have not actually saved money yet. On a $9,000 consolidation with a 3% fee ($270) and $30/month in payment savings, break-even occurs around month 9. After that, every additional month is pure savings.
The timeline bars provide the most visceral comparison. Seeing a gold bar stretching across 8+ years next to a green bar of 3 years makes the payoff acceleration immediately clear — even if the monthly payment difference is modest.
When Does Debt Consolidation Make Sense?
| Scenario | Consolidation Likely Helps? | Why |
|---|---|---|
| Multiple cards at 20%+ APR | Yes | Personal loans at 10%–15% save 5–10+ percentage points on interest |
| Paying only minimums | Yes | Fixed payments force faster payoff — saving years and thousands in interest |
| Good credit (680+) | Yes | Qualifies for the lowest personal loan rates, maximizing the APR difference |
| Small balance (<$2,000) | Maybe | Origination fee may offset interest savings on small amounts |
| Poor credit (below 640) | Unlikely | Personal loan rates above 24% may not beat your card rates |
| Likely to re-use cards | No | You end up with both loan payments and new card debt |
Frequently Asked Questions
How much can I save by consolidating credit card debt?
The savings depend on the gap between your current card APRs and the consolidation loan APR. As a benchmark, consolidating $10,000 in credit card debt from an average 22% APR into an 11% personal loan for 36 months typically saves $3,000–$4,000 in total interest and pays off the debt 5–8 years sooner than making minimum payments on the cards.
Does debt consolidation hurt my credit score?
In the short term, applying for a personal loan triggers a hard credit inquiry (typically a 5–10 point temporary dip). Opening the new account also temporarily lowers your average account age. However, consolidation often improves your score within a few months because it lowers your credit utilization ratio — the amount of revolving credit you are using drops when card balances go to zero. Over the medium term, on-time payments on the installment loan build positive payment history.
What is the best consolidation loan term?
The shortest term you can afford. A 36-month term is the most common sweet spot: it keeps the payment manageable while minimizing total interest. A 60-month term lowers the payment but adds significantly more interest. Use the term selector in the calculator to compare the total cost at different terms.
Should I include the origination fee in my comparison?
Absolutely. The origination fee is a real cost that reduces your loan proceeds. The calculator factors it into the total cost comparison and shows a break-even month so you know when the fee is recouped by monthly savings. If the break-even is longer than 12 months, the consolidation may not be worth it for shorter time horizons.
Can I consolidate debt with bad credit?
Yes, but the rates will be higher. Lenders like Upstart and Upgrade approve borrowers with scores as low as 580, but rates may be 24%–36%. At those rates, the savings versus credit card debt are minimal. Consider alternatives like a balance transfer card, credit counseling, or a debt management plan. See our personal loan comparison for options by credit tier.
What happens to my credit cards after consolidation?
They remain open with zero balances unless you close them. Keeping them open (but unused) actually benefits your credit score by maintaining a low utilization ratio and keeping your average account age intact. The key discipline is not adding new charges to the cards after paying them off with the consolidation loan.
References & Further Reading
- CFPB — What Is a Debt Consolidation Loan?
- Federal Reserve G.19 — Consumer Credit Report
- FTC — Coping With Debt
Keep Reading
- Best Personal Loans — Compare consolidation loan offers
- Personal Loan vs Credit Card — When switching makes financial sense
- Personal Loan Fees Explained — Understand origination and other fees
- How Loans Affect Your Credit Score — Impact of consolidation on your FICO
- Personal Loan Calculator — Calculate payments for a specific offer
- All PrimeRates Calculators