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Debt

Debt Consolidation Calculator

See how much a consolidation loan saves you versus paying each debt separately.

Updated June 2026 · Editorial standards

Your debts

Balance

$

Rate (APR %)

%

Min payment

$

Balance

$

Rate (APR %)

%

Min payment

$

Balance

$

Rate (APR %)

%

Min payment

$

Consolidation loan

%
Monthly savings
$34
Interest savings
$6,412
Current monthly min
$510
New monthly payment
$476

Consolidating saves $34/month and $6,412 in total interest over the life of the loan.Current payoff takes 9 years paying minimums; consolidated loan pays off in 5 years.

Total remaining debt — current vs consolidated

Consolidated loan — principal vs interest

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the debt consolidation calculator?

In short

Debt consolidation combines multiple debts into a single loan, typically at a lower interest rate. To calculate savings, compare your current total monthly minimum payments and total interest paid to the consolidated loan's monthly payment and total interest. If the consolidated rate is lower and the term reasonable, you pay less interest 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

  1. 1Enter each of your current debts — name, balance, interest rate, and minimum payment.
  2. 2Add or remove debt rows as needed.
  3. 3Enter the consolidation loan's interest rate and term.
  4. 4Compare the monthly savings and total interest reduction.

The formula

M=P·r·(1+r)n(1+r)n−1
The monthly payment (M) is derived from the loan amount, the monthly interest rate, and the total number of payments. Each payment first covers that month's interest; the remainder reduces the principal.
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.

gives

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

Debt consolidation makes sense when the new loan rate is meaningfully lower than your current weighted average rate, the monthly payment is manageable, and you won't accumulate new debt on the paid-off cards. It's a tool, not a solution — behavior change is equally important.

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.