What consolidation actually does
Debt consolidation rolls several separate balances into a single new loan with one interest rate, one term and one monthly payment. Instead of juggling multiple due dates and rates, you make one payment, which can simplify your finances and — if the new rate or term is favorable — lower what you pay each month.
This calculator adds up your current balances and the payments you make on them today, then computes the payment on a single consolidated loan at the rate and term you specify. The difference between the two is your monthly saving (or, if negative, the extra cost).
Reading the comparison
The headline is your monthly saving: how much less (or more) the single payment is versus your combined current payments. The supporting figures show the current total, the consolidated payment, and the total balance being refinanced.
The bar chart sets your current combined payment next to the consolidated one so the change is immediately visible.
The catch with a lower payment
A smaller monthly payment is not automatically a better deal. Stretching the balance over a longer term lowers the payment but can increase the total interest you pay across the life of the loan. Watch both the monthly figure and the term:
- Consolidating to a genuinely lower rate is the clearest win — it cuts both the payment and total interest.
- A longer term lowers the payment but may raise lifetime interest; keep the term as short as your budget allows.
- Factor in any origination or balance-transfer fees, which this calculator does not include.
- Avoid running the old accounts back up after consolidating, or you simply add new debt on top.
Things to confirm
This is a planning estimate based on the numbers you enter and assumes a fixed-rate consolidated loan. Real offers may carry fees, variable rates, or collateral requirements, and consolidating certain debts (like federal student loans) can change borrower protections. Verify the full terms before committing.
Formula
totalBalance = Σ balances; r = newRate/100/12; consolidated = total·r / (1 − (1+r)⁻ⁿ); savings = currentMonthly − consolidatedFrequently asked questions
- Does a lower monthly payment mean I pay less overall?
- Not necessarily. A longer term can cut the monthly payment while increasing the total interest paid over the life of the loan.