Enter Debt and Consolidation Details
Example Data Table
This sample shows how a borrower can compare several debts against one replacement loan.
| Debt | Balance | APR | Payment | Consolidation Use |
|---|---|---|---|---|
| Credit Card A | $7,500 | 24.99% | $260 | High-rate payoff target |
| Credit Card B | $5,200 | 19.75% | $190 | Payment simplification |
| Personal Loan | $10,000 | 12.50% | $330 | Term comparison |
| Store Card | $2,100 | 27.99% | $95 | Interest reduction |
Formula Used
Weighted current APR:
Weighted APR = Σ Debt Balance Share × Debt APR
Consolidation monthly payment:
Payment = P × r / (1 - (1 + r)^-n)
Where P is loan principal, r is monthly interest rate, and n is repayment term in months.
Total cost comparison:
Savings = Current Total Paid - New Total Paid
The calculator also simulates month-by-month balances. It adds interest, subtracts payments, and stops when the balance reaches zero.
How to Use This Calculator
- Enter each debt name, balance, APR, and current monthly payment.
- Add the proposed consolidation APR and repayment term.
- Enter origination fees, fixed costs, extra payments, and monthly fees.
- Choose whether fees are financed or paid upfront.
- Press the calculate button.
- Review savings, payment change, payoff time, and chart results.
- Download the CSV or PDF file for your records.
Debt Consolidation Planning Guide
Why This Calculation Matters
Debt consolidation can make repayment easier. It combines several balances into one new payment. The main goal is usually lower interest, better cash flow, or a clearer payoff date. A lower payment may feel helpful. Yet it can cost more when the term becomes much longer. This calculator checks both payment comfort and total cost.
Compare More Than the Rate
A new rate is important. Fees are also important. Origination charges, transfer costs, account fees, and closing charges can reduce savings. This tool includes both financed and upfront fee choices. Financed fees increase the starting balance. Upfront fees reduce cash now, but they do not create extra loan interest.
Study Term Length
Repayment term changes the result quickly. A short term often raises the payment. It can still save money because interest has less time to grow. A long term can lower the monthly payment. It may also increase total interest. Test several terms before choosing a loan.
Review Monthly Cash Flow
The monthly cash flow result shows the difference between old payments and the new payment. A positive number means the new plan lowers your required monthly outflow. A negative number means the new payment is higher. A higher payment is not always bad. It may finish the debt faster and reduce interest.
Use the Chart and Exports
The chart shows how balances may fall under both plans. The schedule helps you review each month. Use the CSV file for spreadsheets. Use the PDF file for sharing or saving. Results are estimates. Always confirm final loan terms with the lender before signing.
Frequently Asked Questions
1. What does this debt consolidation calculator do?
It compares your current debts with a new consolidation loan. It estimates payments, payoff time, interest, fees, cash flow change, and possible savings.
2. Is a lower monthly payment always better?
No. A lower payment may extend the term. A longer term can increase total interest, even when the rate is lower.
3. Why does the calculator include fees?
Fees can reduce or erase savings. Origination fees, closing charges, and monthly costs should be included before choosing a new loan.
4. What is weighted APR?
Weighted APR estimates the average rate across all debts. Larger balances affect the average more than smaller balances.
5. What does RT mean here?
RT refers to rate and term review. The calculator studies how a new rate and repayment term change debt payoff results.
6. Can I add extra payments?
Yes. Enter an extra monthly amount. The calculator applies it to the consolidation loan and estimates a faster payoff.
7. Why might current debt not pay off?
If a payment is lower than monthly interest, the balance can grow. Increase the payment to create a valid payoff path.
8. Are these results exact?
No. They are planning estimates. Actual lender terms, daily interest rules, late fees, and payment dates can change final results.