The Finance Algorithm

Debt Consolidation Calculator

See if consolidating your debts into one personal loan will save you money

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$8k

Total credit card balances

%
21.24%

Average credit card rate (usually 18-22%)

$

What you actually pay off the cards each month

$
$12k

Current personal loan balances

%
12%
$
$
$0

Buy now pay later, store cards, etc.

%
$
%
9.5%

Interest rate on the new consolidated loan

5y
$

Establishment and other upfront fees on the new loan

The button asks our AI to explain these figures in words.

Debt consolidation

Extra cost

$902

consolidating costs more in interest and fees

New repayment

$420

a month @ 9.5% over 5yr

Paying now

$800

a month, weighted rate 15.7%

Debt-free now in

36 mo

vs 60 months consolidated

Where your balances sit today

The balances you entered, by type.

$20,000total debt
Credit cards40.0%
Personal loans60.0%

What you pay now vs the consolidated repayment

A lower repayment can come from a longer term, which can mean paying more interest overall.

$800Paying now$420Consolidated

Keep your debts vs consolidate

Each current debt cleared at its own rate and today's repayment, against the new loan's interest plus its upfront fees.

$4,301Keep current debts$5,202Consolidate
What Moneysmart suggests checking. Consolidating may help when the new loan has lower interest and fees than your current debts, its term isn't longer, and you can keep up the repayment. Here the new 5-year term runs longer than the 36 months your current debts take to clear. Cards that are cleared but kept open can fill up again, leaving both the new loan and new card debt.

How it works

Juggling a few debts at different rates? Consolidating rolls them into one loan with one repayment, which only helps if the new loan costs less overall. Put in your debts and the new loan to see whether it does.

  1. 1Enter your credit card debt and its interest rate
  2. 2Add any existing personal loan balances
  3. 3Include other debts (BNPL, store cards)
  4. 4Input the consolidation loan rate you've been offered
  5. 5Choose your preferred loan term
  6. 6Compare your current costs vs consolidated costs

The figures today

As of 7 November 2026, the lowest personal loan rate is 5.80%, from Plenti Personal Loan, while the typical best across 68 institutions is 7.96%.

Personal loan rates

Worked examples

Credit Card + Personal Loan

Tom has $8,000 on cards at 20%, paying $300 a month, and a $12,000 personal loan at 14%, paying $400. He's offered 9.5% over 5 years with $300 of fees.

Credit card debt
$8,000
Credit card interest rate
20%
Credit card repayment now (monthly)
$300
Existing personal loan debt
$12,000
Existing loan rate
14%
Personal loan repayment now (monthly)
$400
Other debts (BNPL, store cards)
$0
Other debt rate
0%
Other debt repayment (monthly)
$0
New consolidation loan rate
9.5%
Consolidation loan term (years)
5
Consolidation loan fees
$300

One repayment of $420 frees up $280 a month, but the 5-year loan runs longer than his current 38 months. Interest of $5,202 plus $300 of fees against $5,525 now saves only $22 - keeping his $700 a month going on the new loan would save much more.

Small Credit Card Balance

Sarah has $3,000 on a card at 18%, paying $150 a month. She's offered 10.5% over 3 years with $200 of fees.

Credit card debt
$3,000
Credit card interest rate
18%
Credit card repayment now (monthly)
$150
Existing personal loan debt
$0
Existing loan rate
0%
Personal loan repayment now (monthly)
$0
Other debts (BNPL, store cards)
$0
Other debt rate
0%
Other debt repayment (monthly)
$0
New consolidation loan rate
10.5%
Consolidation loan term (years)
3
Consolidation loan fees
$200

At $150 a month she clears the card in 24 months with $593 of interest. The loan's $510 of interest plus $200 of fees costs $117 more, and takes a year longer.

Questions people ask

When is debt consolidation a good idea?
Consolidation makes sense when: 1) The new loan rate is lower than your current average rate, 2) You're struggling to manage multiple payments, 3) You commit to not taking on new debt. It's not a good idea if you'll just run up credit cards again.
Will debt consolidation affect my credit score?
Short term, applying for a new loan causes a small dip. Long term, it can help your score by lowering your credit utilization and simplifying payments. Missing payments on multiple debts hurts your score more than consolidating.
What about balance transfer credit cards?
Balance transfer cards offer a low or 0% rate for a set period, which can be cheaper than a personal loan if you pay off the balance before it ends. Check the transfer fee, and the rate that applies after - usually the card's purchase or cash advance rate.

The terms, in plain English

Debt Consolidation
Combining multiple debts into a single loan with one monthly payment, ideally at a lower average interest rate.
Balance Transfer
Moving credit card debt to a new card with a 0% promotional rate. Alternative to consolidation loans for smaller amounts.
Credit Utilization
The percentage of available credit you're using. Affects your credit score - lower is better. Consolidation can improve this.

Official sources

Calculate Loan Repayments

See detailed repayment schedule for your consolidated loan.

Compare Loan Offers

Compare different consolidation loan options.

Pay Off Loan Early

Once consolidated, see the benefit of extra repayments.