Debt Consolidation Calculator
Calculate savings by consolidating multiple cards or loans into one personal loan. Model rate drops, origination fees, and monthly cash flow.
✓ Favorable: Consolidating saves you money!
Current Debts Portfolio
Proposed Loan Terms
| Repayment Metrics | Current Path | Consolidated Path | Repayment Advantage |
|---|---|---|---|
| Principal / Outstanding Amount | $20,000 | $20,400 | Additional Bal |
| Annual Interest Rate (APR) | 21% (Weighted) | 10.5% | +10.50% drop |
| Monthly Payment Outflow | $600 | $663 | $63/mo extra |
| Total Repayment Timeline | 56 Months | 36 Months | 20 mos faster |
| Origination processing Fees | $0.00 | $400 | -$$400 |
| Aggregate Interest Accrued | $10,510 | $3,470 | $7,040 saved |
| Aggregate Lifetime Costs | $30,510 | $23,870 | $6,640 saved |
About Our Debt Consolidation Calculator
An institutional-grade Debt Consolidation Calculator designed to model the financial impact of consolidating multiple credit card balances and high-interest loans into a single structured personal loan. The calculator aggregates all current outstanding debts, their respective interest rates (APRs), and current monthly payments. It then compares this portfolio against a proposed consolidation loan with a fixed APR, fixed term, and customizable origination fee.
How to Consolidate Debt Effectively
To evaluate a consolidation loan properly, follow these key steps:
List Your Existing Debts
Gather all credit card and loan statements to find your total outstanding balances and current interest rates.
Input Proposed Loan Terms
Enter the interest rate (APR) and duration of the proposed personal consolidation loan.
Configure Fee Handling
Decide whether the lender's origination fee will be financed (added to the loan balance) or paid out-of-pocket.
Compare Lifetime Cost & Cash Flow
Analyze the net savings, change in monthly payment, and total lifetime interest paid under the new terms.
Frequently Asked Questions About Debt Consolidation
How does debt consolidation work?
Debt consolidation involves taking out a new loan (usually a personal loan) with a lower interest rate to pay off multiple smaller, high-interest debts (like credit card balances). You are then left with only one monthly payment, making debt management simpler and potentially saving you money on interest.
Can debt consolidation cost me more money?
Yes. If you choose a long repayment term on your new consolidation loan, you will pay interest over a longer period. Even if your new interest rate is lower, the total interest paid over time might be higher than if you had paid off the original debts quickly on your old terms.
ما هي رسوم تأسيس القرض (Origination Fee)؟
رسوم تأسيس القرض هي مصاريف إدارية يفرضها البنك أو المقرض لمعالجة طلب القرض الجديد، وتتراوح عادة بين 1% إلى 8% من قيمة القرض. يمكن دفعها نقداً مقدماً أو دمجها في القرض، مما يزيد من إجمالي أصل الدين الذي تدفع عليه الفوائد.
Does this factor in consolidation fees?
Yes. Include origination fees and rate drops to calculate true monthly savings.