Debt Consolidation Calculator - Combine Debts Into One Payment

Five debts, one payment, one rate

Debt consolidation rolls multiple obligations - credit cards, personal loans, medical bills, store financing - into a single loan with one monthly payment and one interest rate. The appeal is obvious: fewer due dates, lower payment, less stress. The risk is less obvious: a longer term can increase total interest even when the rate drops. This calculator lays out both sides.

debts combined

$47,000

total balance

$621/mo

new single payment

How to use this calculator - step by step

Select the number of debts - choose 2, 3, 4 or 5. Include everything you want to consolidate.

Enter each debt - name (optional), current balance, monthly payment, and months remaining.

Set consolidation terms - the interest rate, repayment period and origination fee offered by the new lender.

Read the results - new payment vs sum of old payments, total cost comparison, and a clear verdict.

Common debt profiles and typical consolidation rates

Debt type	Typical rate	Consolidation target	Note
Credit cards	18-26%	7-12%	Biggest rate drop - consolidation almost always wins
Personal loans	8-15%	6-10%	Moderate savings - depends on credit score
Medical debt	0-10%	6-10%	May increase rate - negotiate directly first
Store financing	0-29%	7-12%	Deferred interest traps make consolidation attractive
Payday loans	300-600%	8-15%	Highest priority to consolidate - any rate is better

Scenarios

Scenario 1: Credit card + personal loan
Debt A: $12,000 balance, $380/mo, 42 months. Debt B: $8,000 balance, $290/mo, 32 months. Combined: $670/mo, $25,240 total. Consolidation at 8.5% / 48 months: $492/mo, $23,630 total. Saving: $178/mo and $1,610 total.

Scenario 2: Three debts, high-rate cards
$15,000 card at $500/mo (40 mo) + $7,000 card at $280/mo (30 mo) + $5,000 personal at $200/mo (30 mo) = $980/mo, $34,400 total. Consolidation at 9% / 60 months: $561/mo, $33,645 total. Saving: $419/mo and $755 total.

Scenario 3: Lower payment but higher total cost
$30,000 personal loan at $850/mo (42 mo) + $10,000 card at $350/mo (36 mo) = $1,200/mo, $48,300 total. Consolidation at 7.5% / 120 months: $475/mo, $56,963 total. Payment drops by $725/mo, but total cost rises by $8,663. Worth it only if cash flow matters more than total cost.

Scenario 4: Five small debts
Five debts totaling $22,000, combined payment $1,150/mo. Consolidation at 8% / 24 months: $996/mo, $23,908 total vs $24,900 separate. Saving: $154/mo and $992 total. The real win here is simplicity - one payment instead of five.

Scenario 5: Payday loan rescue
$3,000 payday loan at $500/mo (8 mo = $4,000 total) + $6,000 card at $250/mo (30 mo) = $750/mo. Consolidation at 10% / 36 months: $290/mo, $10,449 total vs $11,500 separate. Saving: $460/mo and $1,051 total.

FAQ - Frequently asked questions

When does consolidation make sense?

When the consolidation rate is lower than the weighted average of your existing debts and you keep the term similar. The bigger the rate drop, the bigger the savings. Credit card debt at 20%+ consolidated into a 9% personal loan is almost always worth it. But consolidating a 6% personal loan into a 9% consolidation loan - that makes it worse.

Why might consolidation increase total cost?

Because a longer term means more months of interest charges. If you stretch a $20,000 debt from 36 months at 12% to 120 months at 8%, the payment drops significantly - but the total interest paid nearly doubles. The fix: choose the shortest term you can afford. Match or beat the weighted average remaining term of your current debts.

What rate can I get for a consolidation loan?

Rates depend heavily on your credit score. Excellent credit (740+): 6-9%. Good (670-739): 9-14%. Fair (580-669): 14-20%. Below 580: options are limited and rates may exceed what you already pay on some debts. Check offers from credit unions, online lenders and your existing bank before committing.

Consolidation loan vs balance transfer - which is better?

A 0% balance transfer card beats a consolidation loan in total cost - if you can pay off the balance during the promotional period (typically 12-21 months). The risk: if you cannot pay in time, the deferred interest at 20%+ kicks in retroactively. Consolidation loans have a fixed rate and fixed timeline, which makes budgeting easier and eliminates the deferred-interest trap.

Does consolidation hurt my credit score?

Short-term: a hard inquiry drops your score by 5-10 points. Closing old accounts may also reduce available credit and increase utilization. Long-term: consistent on-time payments on the consolidation loan build your score over 6-12 months. The net effect is usually positive if you keep old accounts open (even with zero balance).

Should I include my mortgage in a consolidation?

Usually no. Mortgage rates are typically the lowest rates you have (5-8% vs 15-25% on cards). Including a mortgage in an unsecured consolidation loan would likely increase the rate on that portion. Instead, consolidate only the high-rate debts (cards, payday loans, store financing) and keep the mortgage separate.

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