Debt Consolidation Calculator
Calculate credit card payments, payoff timelines, and interest costs.
Current Debts
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%
%
Additional amount you can pay toward debts
Consolidation Option
%
New loan interest rate
Loan term length
Upfront costs for consolidation
Financial Profile
Current credit score
Gross monthly income
Debt Analysis
Total Debt
$25,000
17.15% avg rate
Monthly Payments
$700
Current minimums
Payoff Time
4 years
With minimum payments
Principal vs Interest
Best Strategy: CONSOLIDATION
• Consolidation saves $3155 in total interest
• Monthly payment reduces by $158
Consolidation Analysis
New Monthly Payment:$542
Monthly Savings:$158
Total Savings:$3,155
Break-even Point:3 months
Payoff Strategies Comparison
Debt Avalanche Method
Total Interest: $11,085
Payoff Time: 4 years
Debt Snowball Method
Total Interest: $11,155
Payoff Time: 4 years
Motivation Score: 68%
Cash Flow Impact
Current Debt-to-Income:25%
New Debt-to-Income:22.4%
Available Income:$800/month
Strategy Comparison
| Strategy | Monthly | Interest | Time |
|---|---|---|---|
| Current (Minimum Only) | $700 | $11,155 | 4y |
| Debt Avalanche | $700 | $11,085 | 4y |
| Debt Snowball | $700 | $11,155 | 4y |
| Consolidation Loan | $542 | $7,500 | 5y |
Important Considerations
- • Avoid taking on new debt after consolidation
- • Ensure stable income before committing to new payment
- • Consider impact on credit score and available credit
How it works
Debt consolidation rolls several balances into one new loan with a single payment. The calculator compares your current debts — each at its own rate — against one consolidated loan. It pays off if the new rate is below your current blended (weighted-average) rate, and if any fees don't eat the savings.
Blended rate vs new rate
Blended rate = Σ(balance × rate) ÷ Σ balances
- balance
- amount owed on each debt
- rate
- APR on each debt
Worked example
- Card A: $5,000 at 24%
- Card B: $10,000 at 12%
- Consolidation loan offered at 11%
- Blended = (5,000×24% + 10,000×12%) ÷ 15,000
- Blended = (1,200 + 1,200) ÷ 15,000 = 16%
Your debts average 16% — consolidating to 11% cuts the rate and the monthly interest.
Good to know
- Consolidation only helps if the new rate beats your blended rate — otherwise you're just reshuffling.
- A longer term can lower the monthly payment while raising total interest; compare lifetime cost, not just the payment.
- Watch balance-transfer or origination fees (3–5%), and don't run the old cards back up — that's the usual way consolidation backfires.