Enter your total high-interest debt, average current interest rate, current monthly payments, new consolidation interest rate, and new loan term to calculate your monthly savings and total interest saved.
How to use this calculator
Enter your total combined high-interest credit card or loan balances.
Enter the weighted average interest rate (APR) across your current debts.
Enter the total monthly amount you are currently paying across all accounts.
Enter the interest rate and repayment term offered for the new consolidation loan.
Read your monthly payment reduction and total lifetime interest savings.
P = total debt, r_c = current monthly rate, M_c = current payment, r_new = new monthly rate, n_new = new term in months.
Example
$25,000 debt @ 19.5% ($750/mo, 4 yrs 1 mo, $11,540 interest) vs 9.5% 4-year consolidation loan ($628.02/mo) → Saves $121.98/mo and $6,395 in total interest.
Key insights
Consolidating 19.5% credit card debt into a 9.5% personal loan can cut interest costs by over 50% while lowering monthly payments.
A fixed-rate consolidation loan replaces unpredictable credit card minimums with a structured, clear payoff date.
Avoid taking on new credit card debt after consolidating existing balances to prevent doubling your debt burden.
Lenders typically require a credit score of 660+ to qualify for competitive single-digit consolidation loan APRs.
How to interpret your result
Monthly Payment Savings
The immediate monthly cash flow freed up by swapping high-interest credit cards for a lower-rate loan.
Total Lifetime Interest Saved
The total dollar amount of interest fees eliminated over the entire loan lifespan.
Structured Payoff Horizon
Replaces endless minimum credit card payments with a guaranteed payoff date.
Frequently asked questions
Does debt consolidation hurt your credit score?
Applying for a new loan causes a minor 5-point credit drop initially, but paying off high credit card balances quickly boosts your credit score significantly by lowering credit utilization.
Is debt consolidation a good idea for high-interest debt?
Yes, if you can secure a consolidation interest rate lower than your current credit card APRs and commit to not charging new balance onto paid-off cards.
What credit score is needed for a debt consolidation loan?
Most lenders prefer a credit score of 640 or higher, with the lowest interest rates offered to borrowers with scores above 720.
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