Debt Consolidation Calculator — Should You Consolidate?
Calculate if consolidating multiple debts into one loan saves you money. Compare your current total payments with a single consolidated payment.
Debt consolidation combines multiple debts (credit cards personal loans store cards) into one loan with a single monthly payment and often a lower interest rate. If you have 3 credit cards at 18-24% APR and a personal loan at 14% consolidating into one loan at 10-12% can save thousands in interest and simplify your finances. However consolidation only works if you stop accumulating new debt.
Calculate Now
ROI Calculator
Key Information
| Parameter | Details |
|---|---|
| Average Credit Card APR | 22% - 28% |
| Consolidation Loan Rate | 8% - 15% |
| Potential Interest Savings | 30% - 60% reduction |
| Break-Even Point | Usually 3-6 months |
Calculate consolidation savings
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
How much can I save by consolidating debt?
Example: 3 debts totaling $15000. Credit card 1: $5000 at 24% ($125/month minimum). Credit card 2: $7000 at 22% ($175/month). Personal loan: $3000 at 15% ($200/month). Total payments: $500/month. Consolidated at 10% for 36 months: $484/month with total interest of $2410 versus $5800+ paying minimums. Savings: approximately $3400 plus you are debt-free in exactly 3 years.
Is debt consolidation bad for credit score?
Initially your score may drop 10-20 points due to the hard inquiry and new account. However consolidation typically improves your score within 3-6 months because: your credit utilization drops (especially if consolidating credit card debt) your payment history improves with one consistent payment and your credit mix diversifies. The key is not running up the credit cards again after consolidation.
What is the best way to consolidate debt?
Options ranked by interest rate: 0% balance transfer credit card (0% for 12-21 months — best for under $10000). Personal loan from bank or credit union (8-12%). Home equity loan or HELOC (6-9% but uses your home as collateral). 401k loan (prime + 1% but you repay yourself). Avoid debt consolidation companies that charge high fees or use debt settlement which damages credit.
Related Calculators
Last updated: March 2026