Consolidation saves money only when the new rate and fees beat what you pay now. Take $20,000 of card debt at 22.36%, the Fed’s August 2026 average for accounts charged interest. Paying it off in 48 months costs $634.04 a month and $10,434 in interest. A 24-month-average personal loan rate of 11.90% over the same 48 months drops that to $525.70 and $5,233. Stretching to 60 months lowers the payment to $443.88 but raises interest to $6,633.
This debt consolidation calculator estimates the monthly payment if you roll several balances into one loan. Enter total debts, the consolidation APR, and the new term in months. The result is a standard amortizing payment on that combined principal.
People use it before applying for a personal loan, balance transfer product, or other refinance that replaces card and installment debt with a single schedule. For a broader affordability check, also review the debt to income calculator.
How the payment is calculated
The tool runs PMT on balance, new rate, and months. Monthly rate is annual percent divided by 12. The payment covers interest first and reduces principal over the term. Enter your current average APR to see the old payment over the same term, the monthly savings and the interest saved.
Worked example
Total debts $20,000, consolidation APR 9 percent, term 48 months. The estimated monthly payment is about $497.70.
| Input | Value |
|---|---|
| Total debts | $20,000 |
| Consolidation APR | 9% |
| Term | 48 months |
| Monthly payment | ~$497.70 |
Example — $20,000 consolidated
| Option | APR | Term | Payment | Total interest |
|---|---|---|---|---|
| Keep cards | 22.36% | 48 mo | $634.04 | $10,433.77 |
| Personal loan | 11.90% | 48 mo | $525.70 | $5,233.37 |
| Personal loan | 11.90% | 60 mo | $443.88 | $6,632.74 |
| Lower-rate loan | 9.00% | 48 mo | $497.70 | $3,889.64 |
Rates: Federal Reserve G.19, August 2026 (credit card accounts assessed interest 22.36%; all accounts 21.19%; 24-month personal loan 11.90%). Origination or balance-transfer fees are not included.
How to use the fields
- Total debts should be the sum you plan to pay off with the new loan.
- Current average APR helps you judge whether the new rate is truly better.
- Consolidation APR is the rate used in the payment math.
- Months is the full term of the new loan, not months already paid on old accounts.
When consolidation helps
A lower rate with a similar term usually cuts both payment and interest. A longer term can cut the payment even when the rate is only slightly better, but total interest may rise. Run both a shorter and longer term so you see the tradeoff clearly.
Fees and cash flow
Origination fees and balance transfer fees raise the true cost. If a fee is financed into the loan, add it to the balance before you trust the payment. Keep a cash buffer so the new payment does not crowd out rent, food, and emergency savings.
Common mistakes
- Leaving old cards open and filling them again after the refinance
- Ignoring fees that wipe out the rate benefit
- Choosing the longest term only because the payment looks small
- Forgetting that secured products put collateral at risk
Comparing offers
Hold balance and months fixed while you change only the APR across quotes. Then hold APR fixed and change months. That two step scan shows which lever moves payment more for your case. If a lender quotes a different day count or fees, treat this tool as a first pass, not a closing disclosure.
After you consolidate
Update autopay, confirm payoff letters for old accounts, and avoid new high interest balances while the consolidation loan runs. Recalculate if you add a lump principal payment later so you know how the schedule shortens.
Used this way, the debt consolidation calculator is a planning screen before you sign, not a substitute for reading the loan agreement.
Credit score and approval reality
The calculator assumes you can borrow the balance at the rate you typed. Real offers depend on credit score, income, existing obligations, and lender overlays. If your best realistic rate is higher than the rate you modeled, update the input and run again before you spend time on an application that will not clear underwriting.
Hard inquiries and new accounts can nudge scores temporarily. Plan application timing if you also expect to seek a mortgage or auto loan soon. Keep utilization low on cards you pay off so the consolidation benefit is not undone by new spending.
Document checklist before you apply
- List every balance, APR, and minimum payment you intend to refinance.
- Note fees quoted on each consolidation offer.
- Confirm whether the new loan is secured or unsecured.
- Decide which old accounts will be closed versus left open with zero balances.
- Set a calendar reminder to verify payoff posting within one statement cycle.
When the paperwork matches the payment you modeled, you can move forward with clearer expectations. If the final APR or fees differ, return to this calculator and refresh the estimate before you sign.
Before you consolidate
- Balance-transfer promo rates last for a limited time and may rise afterward. Transfer fees are a percentage or a flat amount, whichever is more. A nonprofit credit counselor can review your options for free. Consolidation won’t help if spending exceeds income. Source: CFPB.
- Many companies advertising “consolidation” are actually debt settlement firms. Settlement can hurt your credit report, and fees and interest can keep building. Source: CFPB.
Limitations
Results ignore taxes, fees, and credit approval. Exact schedules can differ by lender rounding. For a generic loan payment check with principal and rate only, also try the loan calculator.