Calwarden

Debt Consolidation Savings Calculator

Compare current debts vs. a new consolidation loan.

Save

Inputs

$
%
$
%
Years

Your values stay on this device.

Results

Monthly Savings
Total Interest Savings$2,302.81
New Monthly Payment$258.14
Current Total Payment$250.00

Report

Export and share

Document

Copy and share

Assumptions

  • Calculated locally from the inputs shown in this report.

Sensitivity preview

Debt 1 Balance -10%: Monthly Savings $8.00

Debt 1 Balance Current: Monthly Savings -$8.14

Debt 1 Balance +10%: Monthly Savings -$24.27

Related Tools

View All
Loan Calculator
Calculate your monthly loan payments, total interest, and total repayment amount.
Personal Loan Calculator
Estimate monthly payments and total interest costs for unsecured personal loans.
Mortgage Calculator
Comprehensive Mortgage Calculator with Taxes, Insurance, and Amortization.
Auto Loan Calculator
Calculate monthly car payments, factoring in trade-in value and sales tax.
Student Loan Calculator
Calculate monthly student loan payments and see how extra payments can shorten your payoff time.

About this Debt Consolidation

Consolidating debt involves taking out one large loan (usually at a lower interest rate) to pay off several smaller debts (like high-interest credit cards). This simplifies your finances to a single monthly payment and can save you thousands in interest.

How to use this calculator

  1. Enter the details (Balance, Rate, Payment) for up to 3 existing debts.
  2. Enter the terms of the New Consolidation Loan you are considering.
  3. Compare the Monthly Payment and Total Interest to see if it's a good deal.

Accuracy and testing

Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.

View accuracy page

How this calculator works

The calculator sums your existing balances to find the total loan amount needed. It then estimates the remaining interest on your current debts (assuming fixed payments) versus the interest on the new loan. The difference is your potential savings.

Inputs explained

Debt Balance

The amount you currently owe on a card or loan.

Monthly Pay

What you are currently paying per month. If you pay more than the minimum, enter that amount.

New Loan Rate

The APR of the consolidation loan. This should ideally be lower than your weighted average existing rate.

Origination Fees

Upfront fees charged for the new loan. These eat into your savings.

Understanding your results

Positive Monthly Savings means better cash flow. Positive Total Interest Savings means the loan is cheaper long-term. Be careful: lowering your monthly payment by extending the term (e.g., 5 years) might cost you MORE in total interest.

Example scenarios

Good Consolidation

$10k debt at 20% APR (paying $300/mo). Consolidate to $10k at 10% APR for 3 years ($322/mo). You pay slightly more monthly but save thousands in interest and finish faster.

Cash Flow Focus

$10k debt at 20%. Consolidate to 10% for 5 years. Payment drops to $212/mo. You save cash flow, but pay interest for longer.

Key Features

  • Multi-debt aggregation
  • Savings Analysis
  • Fee Integration

Things to Keep in Mind

Assumes fixed payments for existing debts to calculate remaining interest. Real credit card minimums fluctuate.

Tips & Best Practices

  • After consolidating, stop using the credit cards you just paid off to avoid running up the balance again.
  • Check for Balance Transfer cards with 0% APR as an alternative to a personal loan.

Glossary of Terms

Origination Fee
A percentage fee deducted from the loan proceeds (usually 1-5%).
Weighted Average Rate
The average interest rate of your combined debts, weighted by their balances.

Frequently Asked Questions

Does consolidation hurt my credit score?
Initially, you may see a small dip due to the hard inquiry and new account. However, paying off high-utilization credit cards usually boosts your score significantly in the medium term.
Is a longer loan term better?
A longer term lowers your monthly payment but increases the total interest you pay. Aim for the shortest term you can comfortably afford.
What if the new rate is higher?
Consolidation rarely makes sense if the new interest rate is higher than your current weighted average rate, unless you are desperate to lower monthly payments to avoid default.