The Finance Algorithm
TFA

Debt Consolidation Calculator

Calculator

Combine multiple credit card debts into one manageable payment

Free to useNo data storedAI insightsUpdated: February 2026

Juggling multiple credit cards? Debt consolidation combines them into one payment, often at a lower rate. But is it right for you? This calculator compares the numbers.

Enter Your Details

Enter Your Details

$
%
$
%
$
%
%

Personal loan or balance transfer rate

$

Loan fees or balance transfer costs

Real-World Examples

3-Card Consolidation

Card 1: $3,000 at 20%. Card 2: $5,000 at 22%. Card 3: $2,000 at 19%. Consolidate to 12% personal loan over 36 months.

Inputs Used:

card1Balance:3,000card1Rate:20card2Balance:5,000card2Rate:22card3Balance:2,000card3Rate:19consolidationRate:12consolidationTerm:36

Current: $323/month combined, $3,892 interest over 36 months. Consolidated: $332/month, $1,968 interest. Saves $1,924!

Frequently Asked Questions

Glossary

Debt Consolidation
Combining multiple debts into a single loan with one payment.
Weighted Average Rate
The combined interest rate across all debts based on their balances.
Secured vs Unsecured
Secured loans (using your home/car) have lower rates but more risk.

How to Use

  1. 1Enter each credit card's balance and rate
  2. 2Add the consolidation loan terms you've been offered
  3. 3Include any fees (establishment, transfer)
  4. 4Compare total interest and payments
  5. 5See if consolidation makes sense

Key Information

  • Lower rate doesn't always mean less total interest (term matters)
  • Personal loan rates are typically 7-15% vs credit card 17-25%
  • Balance transfer cards offer 0% but for limited periods
  • Fees can offset some of the savings

Pro Tips

  • Don't close old cards after consolidating (hurts credit score)
  • Stop using cards completely while paying off consolidated loan
  • Choose shortest term you can afford for least total interest
  • Compare personal loan vs balance transfer options

Avoid These Mistakes

  • Consolidating but then running up card balances again
  • Choosing long term for lower payment (more total interest)
  • Not including fees in the comparison
  • Closing old cards and hurting credit utilization

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

Ask AI anything