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One to eight debts. Values stay in this browser and update the comparison automatically.
DebtBalance ($)Annual rate (%)Monthly payment ($)Keep-plan fees ($)Remove
$
Must cover the entered debt total.
%
months
$
$
This changes both the financed principal and total-cost path.
$/ month
Neutral default: $0.
$/ month
Neutral default: $0.
%
Used only when the promotional period is greater than 0 months.
months
Neutral default: 0 months.
MeasureCurrent debtsConsolidationDifferenceCopy
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The chart renderer is unavailable. The same values remain in Cost comparison.

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What to verify
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Estimate only. Confirm payoff amounts, daily-interest timing, rate changes, fees, prepayment terms, collateral, and borrower protections directly with each creditor and lender. A lower payment can still cost more when the term is longer.
Tags: Finance
Debt Repayment Calculator Plan monthly debt payoff from balances and APRs with extra payments and lump sums, then compare timing and interest across strategies.
Personal Loan Calculator Compare a fixed-rate personal loan's monthly payment, fees, total borrowing cost, and payoff savings before you accept an offer.
Effective Interest Rate Calculator Convert a nominal interest quote to an effective annual rate and compare compounding schedules, equivalent quotes and real or holding returns.
APR Calculator Estimate APR from loan proceeds and finance charges across regular payment schedules, including a different final installment and note-rate comparison.

One monthly payment can be easier to manage than several, but convenience is not the same as savings. A consolidation loan replaces selected debts with a new obligation. The useful comparison therefore asks what happens to total dollars paid, interest and fees, required monthly cash, and payoff time—not just whether the new payment is lower.

A lower payment often comes from a lower rate, a longer term, or both. Extending repayment can reduce near-term pressure while increasing the number of months that interest accrues. An origination fee can also change the result immediately, especially when it is added to the new balance and earns interest rather than being paid upfront.

Question Why it changes the decision
Does the new loan cover every balance? Any debt left outside the quote still needs its own payment and cost analysis.
Are fees paid now or financed? A financed fee increases principal; an upfront fee increases immediate cash cost.
Does the rate change after a promotion? A temporary rate can make early months cheap while later months accrue more interest.
Will the payoff take longer? More months can outweigh a lower rate or payment.

Comparisons are most useful when current balances, nominal annual rates, required payments, and known fees come from recent statements, while the new-loan figures come from a written quote. An annual percentage rate may include costs that a nominal note rate does not, so rate labels must be compared carefully rather than treated as interchangeable.

Debt consolidation also changes more than arithmetic. A secured loan may put collateral at risk, a balance-transfer or teaser rate may expire, and replacing protected or flexible debt can remove borrower options. New borrowing does not resolve a budget that remains short each month. Cost evidence should support a wider affordability and risk review, not replace it.

The most consequential mistake is accepting a smaller monthly payment without checking lifetime cost and payoff date. A sound comparison keeps all three visible: monthly cash flow, total cost, and time in debt.

How to Use This Tool:

Use statement balances for the current plan and the lender's written terms for the proposed plan. Keep optional extra payments at amounts you could sustain every month.

  1. Enter one row for each Current debt, including its balance, nominal annual rate, required monthly payment, and any one-time fee that applies only if you keep that debt.
  2. Enter the Consolidation amount, standard annual rate, quoted term, quoted monthly payment, and origination or lender fees. The amount must cover the total entered balances.
  3. Choose whether the lender fee is Paid upfront or Added to balance. Financing it raises the principal that accrues interest.
  4. Open Advanced only when the quote or repayment plan includes extra monthly payments or a temporary promotional rate. A promotional period cannot exceed the quoted term.
  5. Read the modeled lifetime difference together with Payment and Payoff. If either plan does not clear within 600 months, correct the rate or raise the payment before using the comparison.

Interpreting Results:

Modeled lifetime savings is positive when the current plan's total payments and applicable fees exceed the consolidation plan's total. Read that value with Modeled payoff time. A result can be cheaper overall yet keep you in debt longer, or cost more while finishing sooner.

  • Planned monthly payment describes recurring cash flow, not lifetime value.
  • Interest and fees separates borrowing cost from principal repayment.
  • Durable break-even is the first modeled month from which the consolidation path stays economically ahead through payoff. A temporary crossover does not count.
  • Quoted-term variance means the entered payment does not reproduce the lender's stated term under the monthly model. Verify payment timing, rate details, and final-payment rules.

Treat the result as a scenario, not approval of a loan. Confirm payoff amounts, prepayment terms, collateral, changing rates, lender disclosures, and borrower protections directly with the creditors and lender.

Technical Details:

Both paths use a monthly-period amortization model. Each open balance first receives one month of interest at the nominal annual rate divided by 12, then receives its scheduled payment. Extra money on the current debts goes to the highest-rate open balance. The consolidation path uses the promotional rate for the entered number of months and the standard rate afterward.

Formula Core

The monthly rate and interest for debt i in month m are:

ri = APRi1200 Ii,m = Bi,m-1 × ri Bi,m = max ( 0, Bi,m-1 + Ii,m - Pi,m )

B is balance in dollars, APR is the entered nominal annual percentage rate, I is monthly interest, and P is the payment applied that month. Payments never exceed the balance plus accrued interest. The model keeps full numeric precision during the monthly loop and rounds reported dollar values to cents.

Lifetime savings compares the two complete payment paths:

Lifetime savings = Current payments and fees - Consolidation payments and upfront fees

When a lender fee is financed, it is added to consolidation principal and repaid through the monthly payment. When it is paid upfront, it is added separately to consolidation total cost.

Rule Core

Rule Exact treatment
Current-plan extra payment Applied after every scheduled payment, highest annual rate first; ties follow entered order.
Promotional rate Applies in months 1 through the promotional period; the standard rate begins in the next month.
Economic advantage in month m Current fees + current cumulative payments + current remaining balance, minus consolidation upfront fees, cumulative payments, and remaining balance.
Durable break-even The first month at which economic advantage is at least negative half a cent and never falls below that boundary later.
Model horizon Both paths must repay within 600 monthly periods; otherwise the comparison is rejected.

The quoted term does not force payoff. The entered payment drives the amortization, and the difference between modeled payoff and quoted term is reported so a quote that does not reconcile can be checked.

Limitations:

This is an educational estimate, not financial advice or a lender disclosure. The monthly model does not reproduce daily interest, statement-cycle timing, changing minimums, late charges, taxes, credit-score effects, or every payment-allocation rule.

  • Verify exact payoff amounts because statement balances can differ from the amount needed to close an account.
  • Review collateral and borrower protections before replacing unsecured, federal, hardship, or otherwise protected debt.
  • Check that the post-promotion rate and all lender fees appear in the written agreement.
  • Keep the original budget problem in view; consolidation cannot make an unaffordable monthly plan sustainable by itself.

Worked Examples:

Lower cost with a longer payoff

Three debts totaling $15,000 have scheduled payments of $650 per month. A $15,000 consolidation quote at 9.5% uses a $480.49 payment, a 36-month quoted term, and a $450 upfront fee. Under the monthly model, the current debts finish in 34 months and cost $19,106.79, while the new loan finishes in 37 months and costs $17,747.82. The modeled saving is $1,358.97, but payoff takes three months longer and differs from the quote by one month. That is a cost improvement with a timing tradeoff, not an unqualified win.

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