Should I finance the origination fee?

If you can pay it upfront, you avoid paying interest on the fee. This tool assumes it’s financed; set fee % to 0 if you’ll pay it in cash.

What if my credit score changes the offered APR?

Adjust the new APR to the rate you’re likely to qualify for and rerun the numbers.

Does this cover multiple debts?

Yes—enter the total balance and a blended APR. For more precision, first compute a weighted APR using the weighted-average interest calculator.

Can I include prepayment?

Extra payments aren’t modeled here. If your new loan allows prepayment without penalty, you could repay faster than shown.

Is consolidation always cheaper?

Not if the term is much longer or the fee is high. Check the interest saved line—if negative, consolidation costs more.

finance calculator

Debt Consolidation Calculator

Compare paying your current high-interest debts vs rolling them into a new consolidation loan with an origination fee.

Results

Current payoff time (months): 52.00
Total interest (current path): $8,394
New consolidated payment: $344
Total interest (new loan): $5,171
Total paid (new loan incl. fee): $20,621
Origination fee cost: $450
Interest saved vs current: $3,224
Months saved vs current: -8.00
Payment change (new − current): -$106

How to use this calculator

Enter the total debt you’ll consolidate and your current blended APR/payment.
Enter the new loan’s APR, term, and origination fee % (0 if none).
Review the new monthly payment, total interest, and total paid including the fee.
See interest saved, payment change, and months saved vs staying on your current path.

Inputs explained

Total debt: Combined balances you plan to roll into the new loan.
Current APR/payment: Blended APR and total monthly amount you pay now across cards/loans.
New APR/term: Rate and term for the consolidation/personal loan.
Origination fee %: Upfront fee as a percent of the loan; assumed financed into the loan amount.

How it works

We simulate paying your current balance at the blended APR with your current monthly payment to get payoff months and total interest.

For the consolidation loan, we add the origination fee to the balance, calculate the amortized payment using the new APR/term, and total interest over that term.

We compare payment change, interest saved, and months saved between the current path and the new loan.

Formula

Current path: iterate monthly with interest = Balance × (APR/12) and payment = current payment until payoff.
New loan: Payment = P × r / (1 − (1+r)^{−n}) on (Debt + Fee), where r = APR/12, n = term months.
Savings = Interest(current) − Interest(new); Months saved = Months(current) − Term months.

When to use it

Comparing a consolidation/personal loan offer to your current high-APR cards.
Seeing if a lower APR offsets an origination fee.
Sizing term length to balance payment relief vs total interest paid.
Checking if a longer term costs more in interest even with a lower APR.

Tips & cautions

If the new payment is lower but term is longer, total interest may still rise—check interest saved before committing.
Pay fees upfront if possible to avoid financing them and paying interest on the fee.
Don’t add new card balances after consolidating—freeze spending to realize the savings.
Ask about prepayment penalties; avoid loans that block extra payments if you plan to pay faster.
Assumes fixed monthly payments and a single blended current APR; individual card minimum rules aren’t modeled.
Assumes the origination fee is financed; if you pay it upfront, adjust the fee % to 0 and add the fee separately.
Does not include late fees, annual fees, or new purchases after consolidation.
If your current payment doesn’t cover interest, payoff is marked as infinite—raise the payment to see realistic results.

Worked examples

$15k @22% paying $450 → new 12% loan, 5 years, 3% fee

Current payoff ≈ 52 months; interest ≈ $8,394
New payment ≈ $344; total interest ≈ $5,171 (fee financed)
Interest saved ≈ $3,224; payment drops ≈ $106; months saved: –8 (longer term)

$10k @19.99% paying $300 → new 9% loan, 3 years, 2% fee

Current payoff ≈ 50 months; interest ≈ $4,714
New payment ≈ $324; total interest ≈ $1,477 (fee financed)
Interest saved ≈ $3,237; payment rises ≈ $24; months saved ≈ 14

Deep dive

This debt consolidation calculator compares your current high-interest payments to a new fixed-rate consolidation loan, including origination fees, to show payment change, payoff time, and interest saved.

Use it to decide if rolling balances into one loan is worth it or if you should stick with your current payoff plan.

FAQs

Should I finance the origination fee?: If you can pay it upfront, you avoid paying interest on the fee. This tool assumes it’s financed; set fee % to 0 if you’ll pay it in cash.
What if my credit score changes the offered APR?: Adjust the new APR to the rate you’re likely to qualify for and rerun the numbers.
Does this cover multiple debts?: Yes—enter the total balance and a blended APR. For more precision, first compute a weighted APR using the weighted-average interest calculator.
Can I include prepayment?: Extra payments aren’t modeled here. If your new loan allows prepayment without penalty, you could repay faster than shown.
Is consolidation always cheaper?: Not if the term is much longer or the fee is high. Check the interest saved line—if negative, consolidation costs more.

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