Debt Consolidation Calculator

Compare multiple debts vs one consolidated loan. See interest savings and simplified payments.

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Consumer Tools

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Use the Debt Consolidation Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Rolling several debts into one new loan can lower the interest you pay and replace a handful of due dates with a single payment. This calculator lays out that trade-off in concrete numbers, projecting what consolidation would do to your costs and cash flow through 2026 so you can see whether the move is worth making.

Under the hood, it adds up the outstanding balances on your current debts and works out their weighted average interest rate. That combined picture is then set against a single consolidation loan, with the tool computing the new monthly payment and the total interest paid across the loan term. Both scenarios assume fixed interest rates.

Two things quietly undo the savings consolidation promises. Origination fees on the new loan eat into the benefit and are easy to forget, and stretching the repayment term too far can leave you paying more interest overall even at a lower rate. Before committing, confirm the consolidation rate is genuinely below your weighted average existing rate.

Example: Consolidating Credit Card Debt in 2026

  1. 1 Input your individual debts: For example, imagine you have two credit cards. Card A has a $5,000 balance at 22% APR (annual percentage rate) and a $150 minimum payment. Card B has a $3,000 balance at 25% APR and a $90 minimum payment. Your proposed consolidation loan is $8,000 at 10% APR over 60 months.
  2. 2 Calculate: The calculator sums your current debt ($8,000) and calculates your current total minimum payment ($240). It then calculates the monthly payment for the new consolidated loan (approximately $169.96) and the total interest paid for both scenarios.
  3. 3 Result: You would see a potential monthly payment reduction from $240 to $169.96, saving you $70.04 each month. Over 60 months, you'd pay significantly less in total interest with the consolidated loan compared to continuing with your high-interest credit cards.
  4. 4 Context: This example demonstrates how a lower-interest consolidation loan can significantly reduce your monthly outflow and total interest paid, freeing up funds and accelerating your debt-free journey by late 2026.

Source: CFPB — Consumer Tools · Last updated: April 2026

Frequently Asked Questions

How does debt consolidation work?
You combine multiple debts into a single loan with one monthly payment, ideally at a lower interest rate. This simplifies repayment and can reduce total interest if the new rate is lower. Common methods include personal loans, balance transfer cards, and home equity loans.
Does debt consolidation hurt your credit score?
There may be a small temporary dip from the hard credit inquiry and new account. However, consolidation can improve your score over time by reducing credit utilization and making on-time payments easier. Do not close old credit cards after consolidating, as this reduces your available credit.
Is debt consolidation worth it?
It is worth it if you get a lower interest rate than your current weighted average rate and you avoid accumulating new debt. If your problem is overspending rather than high rates, consolidation alone will not solve the issue. Compare total interest paid under both scenarios before deciding.

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