What is the debt consolidation calculator?
In short
Debt consolidation combines multiple debts into a single loan, usually at a lower blended rate. Example: three debts totaling $23,500 (credit card, car loan, medical bill) currently cost about $510/month combined; consolidating at 8% over 5 years drops that to $476/month — a $34/month saving and roughly $4,800 less interest paid overall.
This debt consolidation calculator takes your individual debts (credit cards, car loans, medical bills) and compares them against a single consolidation loan. It shows you the monthly payment difference, total interest savings, and payoff timeline.
How to use this calculator
- 1Enter each of your current debts — name, balance, interest rate, and minimum payment.
- 2Add or remove debt rows as needed.
- 3Enter the consolidation loan's interest rate and term.
- 4Compare the monthly savings and total interest reduction.
The formula
- M
- — Monthly payment
- P
- — Principal (loan amount)
- r
- — Monthly interest rate (annual rate ÷ 12)
- n
- — Total number of payments (months)
Worked example
The scenario
Three debts: credit card ($8,000 at 19.9%), car loan ($12,000 at 7.5%), medical ($3,500 at 0%). Total $23,500. Consolidation loan at 8% for 5 years.
The result
Current combined minimums: ~$510/month. Consolidated payment: $476/month. Monthly savings: $34. Total interest savings: $4,800 over the payoff period.
Common use cases
- Simplifying multiple monthly payments into one
- Reducing the effective interest rate on high-rate credit card debt
- Improving cash flow by lowering total monthly obligations
- Building a clear, fixed payoff timeline
Limitations & assumptions
- 0% balance transfer offers have a limited promotional period — this calculator uses a single rate for simplicity.
- Extending the term can lower monthly payments but increase total interest even at a lower rate.
- Secured consolidation loans (using home equity) put your home at risk; unsecured loans are safer but carry higher rates.
Frequently asked questions
Is debt consolidation a good idea?
What is the difference between debt consolidation and debt settlement?
Does debt consolidation hurt your credit score?
Can I consolidate student loans?
What credit score do I need to consolidate debt?
What is a debt management plan (DMP)?
Should I use a HELOC to consolidate credit card debt?
How long does debt consolidation take?
Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.