🔗 Debt Consolidation Savings Calculator
Enter your current total debt, blended interest rate, and a proposed consolidation loan's rate and term to compare estimated total interest paid.
Two different sums, side by side
Your current debts are priced from the payment you already make; the new loan is priced from the term you choose, which fixes its payment instead.
current: n = -ln(1 - r x B / P) / ln(1 + r), interest = n x P - B
new loan: payment = B x i / (1 - (1 + i)^-N), interest = payment x N - BB is the balance, r and i are the monthly rates (APR / 12), P your present payment and N the new term. On the defaults, $15,000 at 20% and $500 a month takes 41.9 months and costs $5,967 in interest. The same $15,000 at 10% over 36 months costs $484.01 a month and $2,424 - a saving of $3,543.
The rate is only half the answer
Stretch that same 10% loan to 60 months and the payment falls to $318.71 - the number lenders lead with - while interest climbs to $4,122 and the saving halves to $1,845. At 96 months it costs $6,851, more than the 20% debts you started with, and the tool flips to a red Cost figure.
Frequently asked questions
How do I work out my blended APR?
Weight each rate by its balance: multiply every balance by its APR, add those up, and divide by the total debt. A $5,000 card at 24% next to a $10,000 loan at 8% gives (1,200 + 800) / 15,000 = 13.3%.
Does a lower interest rate always mean lower total cost?
No. Total cost is the rate and the term together. Dropping from 20% to 10% saves $3,543 over 36 months but only $1,845 over 60, because you are borrowing for two more years.
Why does my current payoff time look so short?
It assumes you keep paying the full amount every month until the balance is gone. If you are really paying card minimums, which shrink as the balance falls, your true payoff is far longer.