The Finance AlgorithmTFA

Debt Consolidation Calculator

Calculator

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

Free to useNo data storedAI insightsUpdated: February 2026

Juggling multiple debts with different rates and due dates? Debt consolidation combines all your debts into one loan with one monthly payment. But it's only a good idea if it actually saves you money. Our calculator shows you the numbers.

Enter Your Details

Enter Your Details

$

Total credit card balances

%

Average credit card rate (usually 18-22%)

$

Current personal loan balances

%
$

Buy now pay later, store cards, etc.

%

Interest rate on the new consolidated loan

Real-World Examples

Credit Card + Personal Loan

Tom has $8,000 on credit cards at 20% and $12,000 personal loan at 14%. Offered consolidation at 9.5% over 5 years.

Inputs:

creditCardDebt:8,000creditCardRate:20personalLoanDebt:12,000personalLoanRate:14consolidationRate:9.5consolidationTerm:5
Current monthly minimum: ~$700. New single payment: $420. Interest saved over 5 years: ~$4,800. Clear win for consolidation.

Small Credit Card Balance

Sarah has $3,000 on a credit card at 18%. Offered 10.5% consolidation loan over 3 years.

Inputs:

creditCardDebt:3,000creditCardRate:18consolidationRate:10.5consolidationTerm:3
Interest saved: $341 over 3 years. But - check balance transfer cards first. A 0% card for 18 months would save $450+ if paid off in time.

Frequently Asked Questions

Glossary

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.

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

How to Use
  1. Enter your credit card debt and its interest rate
  2. Add any existing personal loan balances
  3. Include other debts (BNPL, store cards)
  4. Input the consolidation loan rate you've been offered
  5. Choose your preferred loan term
  6. Compare your current costs vs consolidated costs
Key Information
  • Credit cards charge 18-22% while personal loans can be 7-12%
  • Longer loan terms mean lower payments but more total interest
  • Consolidation only works if you stop using credit cards
  • Check for balance transfer offers before taking a personal loan
Pro Tips
  • Close credit cards after consolidating - having them open is too tempting
  • Don't just compare monthly payments - compare total cost over the full term
  • Consider balance transfer cards for short-term debt - 0% for 12-24 months beats any loan
  • Check if you can secure the loan against assets for a lower rate
Avoid These Mistakes
  • Consolidating but not changing spending habits - you end up with the old cards maxed again
  • Choosing a long term for low payments - you may pay more interest overall
  • Not including all debts - BNPL and store cards should be consolidated too
  • Ignoring balance transfer options which could be cheaper than a loan
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