Debt Consolidation Loan Calculator

    Find out if a debt consolidation loan is the right choice for you to address financial problems, especially those dealing with credit card debt.

    Debt consolidation loans only work if they offer a lower interest rate and monthly payment than what you currently pay on your credit card debt. Our consolidation calculator does the math for you. All you do is enter easily available information.

    How to Use a Debt Consolidation Calculator

    The starting point for using the debt consolidation loan calculator is to gather all your credit cards and input the amount you owe, the minimum amount due and the interest rate paid on each card.

    The Truth in Lending Act requires all that information to be available on every credit card statement.

    Next, go online or call a bank or credit union to find out the interest rate and payoff time for a debt consolidation loan. Rates could vary, depending on whether you are approved for a home equity loan, personal loan or zero-percent balance transfer as your debt consolidation loan.

    Input the numbers in the appropriate box on this page and hit submit. The consolidation loan calculator will compare costs and give you a clear look at how much money you will save with a debt consolidation loan.

    Example of Consolidation Calculator

    The average American household with credit card debt in 2018, owed $15,654 and paid 16.1% interest on it. If you make the minimum payments on those cards, you would be paying $315 a month and it would take 82 months to pay it off.

    If you were able to get a 10-year debt consolidation loan for $15,654 at 10% interest, your payment would drop to $207 per month, a savings of $108 each month. If you paid the loan off in 10 years, you would save $1,210 in interest.

    If you take the $108 you saved every month using a debt consolidation loan and add it on to your next payment, you would pay off the loan in far less time (65 months) and save far more money ($5,746).

    You can manipulate the numbers in any box – changing the monthly payment or interest rate for either credit card or a debt consolidation – to find an affordable payment schedule that works for you.

    Let our consolidation calculator find out if a debt consolidation loan is right for you.

    Definition of Terms

    Below is a brief definition of each of the terms used by’s Debt Consolidation Calculator to help you better understand why using a debt consolidation loan could save you time and money.

    Each term is broken down in the category it appears under.

    Consolidated Loan Information

    Annual Percentage Rate: Common term that describes the interest rate charged for borrowing money. It represents the actual cost of the money over the term of the loan.

    Number of Years: Length of time you expect it will take to pay off your debt consolidation loan.

    Current Debt Information

    Balance: The amount owed.

    Monthly Payment: Minimum payment expected by credit card company. Usually calculated at two percent of balance owed.

    Yearly Rate: Same as annual percentage rate.

    Terms under Current Debt Analysis

    Total debt balance: Amount owed.

    Total monthly payment: Amount owed each month.

    Total remaining interest to be paid: Amount of interest paid over the life of the loan.

    Total number of payments remaining: Number of months left to pay off the balance owed.

    Consolidated Loan Analysis

    Proposed loan amount: The amount you would borrow to pay off all credit card bills.

    Required monthly payment: The amount you would pay each month for the loan.

    Total remaining interest to be paid: The amount of interest paid when the loan is paid off.

    Total number of payments remaining: Number of monthly payments you must make on the loan.

    If You Apply Your Monthly Savings to the New Loan:

    Monthly savings amount: Money saved each month by using a debt consolidation loan versus paying on the credit card terms.

    Total remaining interest to be paid: Amount of interest you would pay IF you add amount you save each month to your regular monthly payment. For example: If your monthly loan payment was $207 and you saved $108 each month, add the two together to make a payment of $315 each month. This allows you to pay off the loan much faster and save much more money.

    Total number of payments remaining: Number of payments you would make to retire the loan, if you chose to add the monthly savings and monthly payment together. So, instead of making 120 payments for your 10-year loan, you would pay it off in 66 months, or just about half the time.

    Bill Fay

    Bill “No Pay” Fay has lived a meager financial existence his entire life. He started writing/bragging about it seven years ago, helping birth into existence as the site’s original “Frugal Man.” Prior to that, he spent more than 30 years covering college and professional sports, which are the fantasy worlds of finance. His work has been published by the Associated Press, New York Times, Washington Post, Chicago Tribune, Sports Illustrated and Sporting News, among others. His interest in sports has waned some, but his interest in never reaching for his wallet is as passionate as ever. Bill can be reached at

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