Debt Consolidation Calculator

This calculator models the replacement loan in a debt-consolidation offer. It treats the balances you enter as one principal, applies a fixed nominal annual rate divided by 1,200 to get the monthly rate, and uses the level-payment formula M = P × i(1+i)^n ÷ ((1+i)^n − 1), where n is the selected number of months. At zero interest, the principal is divided evenly across the term. It reports the rounded monthly payment, payment total minus principal as modeled interest, and payment total plus upfront fees as modeled cost. The calculation does not retrieve or average your existing accounts. If several balances have different rates, minimums, remaining terms, promotional periods, or fees, the new loan’s single rate is not automatically a fair comparison. Make a separate list of each old balance, its payoff amount, current payment, remaining interest, transfer or origination fee, prepayment charge, and the date a promotional rate ends. Then compare the old plan’s remaining dollars with the new plan’s total dollars. A lower monthly payment can simply mean the new loan lasts longer. Fees are assumed to be paid separately in this model. If the lender finances an origination fee, include that fee in the new principal rather than only in the fee field. If an old account has a payoff fee, include it in the balance or compare it separately. The output does not include taxes, insurance, late charges, credit-score effects, new purchases, or the possibility that a variable rate changes. Read the loan estimate, truth-in-lending disclosure, and contract for the exact finance charge and payment schedule. Consolidation can simplify payments and may lower the rate, but it does not remove the debt. Closing or reusing paid-off revolving accounts can change utilization and create new risk. A secured consolidation loan can put collateral at risk. Compare the total cost, term, rate type, fees, and payment application rather than selecting the lowest monthly figure. The CFPB and FTC consumer guidance emphasize comparing terms and understanding the consequences of credit products; those sources do not recommend a particular consolidation strategy. Use the debt payoff calculator when you are considering extra payments on an existing balance, and the personal loan calculator when you want a general fixed-loan schedule. Run a baseline using the actual payoff quotes, then rerun it when the offer changes. This is a mathematical comparison, not credit counseling or a guarantee that closing old accounts will improve your finances. Keep the old accounts’ payment history and new-loan terms together, and verify that any promised payment reduction comes from a sustainable rate or structure rather than an unaffordable extension. Ask whether the consolidation loan is secured, what happens to old credit lines, and how missed payments or variable rates change the risk. Include the months remaining on each existing account, not only today's minimum payment. A lower monthly payment can simply replace several near-term payments with one longer obligation. Model keeping the old combined payment against the new loan when possible. That test separates a genuine rate improvement from a term extension. Also check whether the new payment is fixed, whether fees are financed, and whether collateral is pledged. Keep the written disclosures and payoff quotes used for the comparison.