Calculator Inputs
Enter each debt, the proposed consolidation terms, fees, and extra payment plan.
Example Data Table
| Debt |
Balance |
APR |
Monthly Payment |
Purpose |
| Credit Card A |
$7,200 |
22.90% |
$235 |
High interest balance |
| Credit Card B |
$4,300 |
18.50% |
$165 |
Medium interest balance |
| Personal Loan |
$2,600 |
15.20% |
$110 |
Installment debt |
| New Consolidation Loan |
$14,100 plus fees |
11.99% |
Calculated |
Single repayment plan |
Formula Used
Monthly loan payment:
Payment = P × r / (1 - (1 + r)^-n)
Here, P is principal, r is monthly interest rate, and n is loan term in months.
Weighted APR:
Weighted APR = Σ(balance × APR) / Σ(balance)
Loan principal with financed fees:
New Principal = Total Debt + Origination Fee + Fixed Fee
Net savings:
Net Savings = Current Total Paid - Consolidated Total Paid
The calculator also simulates month by month payoff. It adds interest, subtracts payments, applies extra payments, and records the remaining balance.
How to Use This Calculator
- Enter each debt balance, APR, and monthly payment.
- Add the new consolidation loan APR and term.
- Enter origination fees, fixed fees, and extra payments.
- Choose the current payoff strategy for comparison.
- Press calculate to view savings, payoff time, and graph.
- Download the CSV or PDF report for later review.
Debt Consolidation Planning Guide
Why Consolidation Matters
Debt consolidation can simplify several balances into one payment. It may reduce stress. It may also lower interest costs. The main goal is not only convenience. The goal is a safer repayment path. A lower rate helps most when fees are small. A fixed term also creates a clear finish date.
Look Beyond Monthly Payment
A smaller payment can feel helpful. It can also hide a longer repayment period. Longer terms may increase total interest. Always compare total paid, not only the monthly amount. This calculator shows both views. It compares today’s debts against a new loan. It includes origination fees and fixed fees.
Use Realistic Inputs
Accurate numbers matter. Enter current balances from recent statements. Use the exact APR for each account. Add the payment you truly make each month. If you plan to pay extra, enter that amount. The tool applies extra payments to both scenarios. That gives a fairer comparison.
Understand Payoff Strategy
The avalanche method targets the highest APR first. It often saves more interest. The snowball method targets the smallest balance first. It may build motivation faster. Pro rata spreads extra payments across active debts. Each strategy can change the current payoff timeline.
Check Fees Carefully
Fees reduce the value of consolidation. Some lenders charge origination fees. Others may charge closing costs. Financing fees increases the loan balance. Paying fees upfront raises early cash needs. The best choice depends on your budget and loan offer.
Review Risk Before Applying
Consolidation is useful when it supports discipline. It is risky if old cards are used again. Avoid adding fresh balances after consolidation. Keep an emergency buffer. Review lender terms carefully. Confirm prepayment rules. Compare offers before signing. A good plan should lower cost, shorten stress, and protect monthly cash flow.
Frequently Asked Questions
1. What does this calculator compare?
It compares your current debts against a new consolidation loan. It estimates monthly payment, total interest, payoff time, fees, and possible savings.
2. Is a lower monthly payment always better?
No. A lower payment can extend the term and increase total interest. Always compare total paid and payoff time before choosing.
3. What is weighted APR?
Weighted APR is the average rate based on each balance size. Larger balances affect the average more than smaller balances.
4. What is the avalanche strategy?
The avalanche strategy sends extra money to the highest APR balance first. It usually reduces total interest faster than other methods.
5. What is the snowball strategy?
The snowball strategy pays the smallest balance first. It can create faster wins and may help people stay motivated.
6. Should fees be financed?
Financing fees lowers upfront cost but increases the loan balance. Paying fees upfront may reduce interest if your budget allows it.
7. Why does the calculator simulate monthly payoff?
Monthly simulation gives a practical estimate. It adds interest, subtracts payments, applies extra money, and tracks remaining balance.
8. Can this replace lender advice?
No. It is an educational estimate. Review actual lender terms, credit impact, fees, and repayment rules before making a decision.