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Home› Calculators› Loans & Debt› Debt Consolidation Calculator

Debt Consolidation Calculator
with True Cost Comparison & Fee Break-Even

Find out if debt consolidation actually saves you money. Compare your current debts against a consolidation loan including fees, interest, payoff timeline, and the real monthly payment difference.

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Debt Consolidation Calculator
Section 1: Your Current Debts
Debt name Balance Annual Rate % Min. Payment
Section 2: Proposed Consolidation Loan
%
Annual interest rate on the consolidation loan you have been offered.
mo.
Total repayment term of the new consolidation loan in months.
$
Any one-time fee charged to open the consolidation loan. Added to total cost.
›
Whether the fee is paid separately or added to the loan principal.
›
How you would pay your current debts if you do not consolidate. Affects the comparison.
$
Any extra monthly payment you currently make above all minimums. Applied to the priority debt.
ⓘ
Calculating...
Net Interest Saved by Consolidating
—
vs current debts at current strategy
Monthly Payment Change
—
per month
Time to Debt-Free Change
—
months
Consolidation Loan Payment
—
monthly
Current Monthly Total
—
all minimums + extra
Fee Break-Even Point
—
months to recover the fee
📈 Current Debts (No Change)
Total debt—
Weighted avg. rate—
Monthly outgoing—
Total interest—
Total cost (P + I)—
Months to debt-free—
🔄 After Consolidation
Loan amount—
Interest rate—
Monthly payment—
Total interest—
Fee cost—
Total cost (P + I + fee)—
Full Calculation Breakdown
Total debt to consolidate—
Weighted average current rate—
Consolidation rate—
Consolidation term—
Loan amount (incl. rolled fee)—
Consolidation monthly payment—
Current monthly (mins + extra)—
Current total interest—
Consolidation total interest—
Upfront fee—
Net interest saved by consolidating—
Monthly payment change—
Time to debt-free change—
Fee break-even point—
Total Balance Over Time: Current vs Consolidated
Current debts
After consolidation
✦ Cal, AI Explanation
Cal is reviewing your consolidation comparison...
💬 Ask Cal about your consolidation decision
Cal
Your consolidation comparison is ready. Ask me whether the monthly saving is worth it, what happens if you use the monthly saving to pay down the loan faster, or how to compare two different consolidation offers.

⚠ When consolidation can backfire

A longer term lowers monthly payments but increases total interest, even at a lower rate
Fees can wipe out months of interest savings. Check the break-even point
Consolidating into a secured loan (e.g. against your home) turns unsecured debt into risk of repossession
If you continue spending on cleared credit cards, you can end up with more total debt
Consolidation only works if you close or freeze the accounts you clear

Related Calculators

Debt-Free Date Calculator→ Multiple Debt Payoff Calculator→ Loan Repayment Calculator→ Remaining Balance Calculator→ Loan APR Calculator→

Related Guides

Should I Consolidate My Debt?→ Consolidation vs Balance Transfer→ How Loan Amortisation Works→

How debt consolidation is evaluated

Debt consolidation replaces multiple debts with a single loan at a new interest rate and term. This calculator compares your current debts (modelled with your chosen payoff strategy) against the proposed consolidation loan. The comparison covers monthly payment, total interest, total cost including fees, and the payoff timeline.

The weighted average rate

Before comparing, the calculator computes your current weighted average interest rate. This is the rate that would produce the same total interest cost as all your existing debts combined, weighted by their balances. If the consolidation rate is below this weighted average, it is likely to save money on interest, assuming the term does not extend significantly.

Weighted avg. rate = Sum(balance_i × rate_i) / Total balance
Consolidation monthly payment: M = P × [r(1+r)^n] / [(1+r)^n − 1]
Net saving = Current total interest − (Consolidation interest + fee)
P = loan amount (plus rolled fee if applicable). r = monthly rate. n = term in months.

The fee break-even point

If there is an upfront fee, the calculator finds the break-even month: the point at which cumulative monthly interest savings equal the fee paid. Before that month, consolidation has not yet paid for itself. After it, you are saving money. If the break-even point is close to or beyond the loan term, the fee may not be worth it even if the rate is lower.

ScenarioRate lowerTerm sameFeeVerdict
Best caseYesYesNoneAlmost always worth it
TypicalYesSlightly longerSmallCheck break-even and total cost
RiskyMarginally lowerMuch longerSignificantLikely costs more in total
TrapNoLongerAnyAlways costs more

Frequently Asked Questions

Does a lower rate always mean consolidation saves money?+
No. A lower rate saves money on interest per month, but if the consolidation term is much longer than your current payoff timeline, the total interest can still be higher. For example, consolidating a 3-year debt at 18% into a 7-year loan at 10% will likely cost more in total interest despite the lower rate, because you are paying for twice as long. This calculator shows both the monthly saving and the total cost, so you can judge whether the lower payment is genuinely worth it.
How does the fee break-even point work?+
If there is an upfront fee, you divide the fee by the monthly interest saving to find the number of months before your savings cover the cost. For example, a $500 fee with a $40 monthly interest saving breaks even after 12.5 months. If you plan to keep the loan for longer than that, the fee is recovered and consolidation still makes financial sense. If you might pay off the loan or refinance before that point, the fee may not be worth it.
What is the weighted average interest rate?+
Your weighted average rate is the single rate that would produce the same total interest as all your current debts combined, weighted by how much you owe on each. A debt with a large balance at a high rate pulls the weighted average up more than a small debt at the same rate. If your consolidation offer is below this weighted average, it is a rate improvement. If it is above it, you are paying a higher effective rate even if some of your current debts are at lower individual rates.
Should I include all my debts in the consolidation?+
Not necessarily. Debts with rates already below the consolidation rate should not be consolidated, as you would be moving them to a higher rate. Debts close to being paid off are often better left alone, since consolidating them restarts a long amortisation and the early months go mostly to interest. Focus consolidation on high-rate, long-remaining debts where the rate difference is clear and meaningful.
What if I use the monthly saving to pay the loan down faster?+
If your consolidation payment is lower than your current combined payments, taking the difference and applying it as an extra payment to the consolidation loan can dramatically improve the result. Instead of stretching the term, you would use the freed cash to maintain roughly the same total monthly outgoing while eliminating the original debts sooner. Use the Multiple Debt Payoff Calculator or the Loan Repayment Calculator to model this scenario.