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Interactive guide · Loans & Credit

How to Calculate Debt Consolidation

Compare several debts against one consolidation loan on cost and payoff date.

Open as a plain tool
The formula

How this number is built

compare interest on current payments against interest + fee on a single fixed loan
Step by step

Calculating it yourself

Step 1

Add every balance you intend to consolidate.

Step 2

Use a weighted average APR rather than the highest single rate.

Step 3

Enter what you currently pay in total each month, not the minimums.

Step 4

Get a real quoted rate — consolidation only helps if the rate genuinely drops.

Step 5

Confirm the origination fee, which is deducted from the loan proceeds.

Questions

What people ask next

Does consolidation hurt my credit?

A hard inquiry and a new account cause a short dip; lower utilization usually recovers it within months.

What about a home equity loan?

The rate is lower but the debt becomes secured against your house, which changes the risk entirely.

Search intent

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Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.