Loan Consolidation Savings Calculator

About this calculator

Consolidating debt means replacing several balances — credit cards, personal loans, each carrying its own interest rate — with a single new loan that pays them all off, ideally at a lower blended rate. The savings (or cost) of doing this comes down to comparing the total interest you'd pay finishing out your current debts at their existing rates against the total interest on the new consolidation loan, which depends on the new rate and the new repayment term — a lower rate stretched over a much longer term can end up costing more in total interest even though the monthly payment drops.

This calculator takes your current balance, your existing interest rate and the rate offered on a consolidation loan, then compares the total interest under each path to show your net savings (or added cost). Borrowers evaluating a balance-transfer card or personal consolidation loan, and credit counselors advising clients on debt payoff strategy use it to see past the "lower monthly payment" pitch and check whether consolidating actually reduces total interest paid, not just the payment size.