Evaluate whether combining debts into one loan actually improves your financial outcome.
Overview
Debt consolidation can simplify payments, but simplification alone is not enough.
This calculator compares current total debt cost against a proposed consolidation structure.
It highlights monthly relief, total interest, and payoff timeline differences.
Include all fees and behavior changes for realistic analysis.
Steps
Use combined balances, rates, and payments.
Input new loan principal, APR, and term.
Include origination and transfer costs.
Compare monthly payment and total cost.
Confirm lower cost or better timeline before proceeding.
Math
Net Savings = Current Total Cost - Consolidated Total Cost
Consolidation is beneficial when total repayment burden decreases after including fees.
Worked cases
Savings = 31,000 - 27,800
Estimated savings is $3,200.
Compare total paid despite lower monthly burden.
Lower payment may still cost more over full horizon.
Add fee to new principal and recompute.
Fees can erase apparent rate advantage.
Why use this
Questions