How to Use This Calculator for Consolidation Decisions
The key comparison: total interest on the consolidation loan vs. total interest if you keep paying your current debts as-is. If the consolidation total is lower, it saves money. If it is higher, it does not — even if the monthly payment is lower.
Step 1: Enter your total debt balance and the consolidation rate you were quoted. Step 2: Note the total interest shown. Step 3: Calculate what you would pay in total interest on your current debts by adding up each debt's remaining interest using our personal loan calculator for each debt. Compare the two numbers.
For a deeper walkthrough of when consolidation makes financial sense, read our complete debt consolidation guide.
Consolidation Scenario Examples
| Scenario | Consolidation Rate | Term | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $15K at current avg. card rate (22%) | 22% | 60 mo. | $428 | $10,680 |
| $15K consolidation at 13% | 13% | 48 mo. | $403 | $4,344 |
| $15K consolidation at 13% extended | 13% | 72 mo. | $295 | $6,240 |
Scenario 2 (48-month at 13%) saves $6,336 in interest vs. paying minimums at 22% APR. Scenario 3 reduces the monthly payment but costs $1,896 more in interest than Scenario 2. Shorter terms almost always win on total cost.