Monthly Savings
$106
Current Payment
$662
New Payment
$556
Payoff Time
60 mo
$662
$556
$6,374
60 months
Debt consolidation combines multiple debts (credit cards, loans) into a single loan with one monthly payment. This can lower your interest rate, reduce monthly payments, and simplify debt management.
Debt consolidation makes sense if: 1) You can get a lower interest rate, 2) You can afford the new payment, 3) You'll save money on total interest, 4) You're committed to not accumulating new debt. Compare total costs before consolidating.
Benefits include: Lower interest rates, single monthly payment, simplified budgeting, potential credit score improvement, and faster debt payoff. However, you may pay more total interest if the loan term is extended.
Risks include: Longer repayment terms (more total interest), secured loans risk losing collateral, potential fees, and temptation to accumulate new debt. Always compare total costs, not just monthly payments.
Inputs
Result
Current payment at 20% over 60 months: $25,000 × [0.01667 × (1.01667)^60] / [(1.01667)^60 - 1] = $662/month ($14,741 total interest). Consolidation at 12% over 60 months: $25,000 × [0.01 × (1.01)^60] / [(1.01)^60 - 1] = $556/month ($8,367 total interest). You save $106/month and $6,374 in total interest.
Inputs
Result
Current payment at 22% over 60 months: $15,000 × [0.01833 × (1.01833)^60] / [(1.01833)^60 - 1] = $414/month ($9,857 total interest). Consolidation at 10% over 48 months: $15,000 × [0.00833 × (1.00833)^48] / [(1.00833)^48 - 1] = $380/month ($3,261 total interest). You save $34/month and $6,596 in total interest by consolidating.
M = P × [r(1 + r)^n] / [(1 + r)^n - 1]Calculates the fixed monthly payment for a loan. Used for both the current debt payment (assuming 60-month term) and the consolidation loan payment.
Where:
M= Monthly paymentP= Total debt amount (principal)r= Monthly interest rate (annual rate / 100 / 12)n= Loan term in months (current debts use 60 months)Monthly Savings = Current Monthly Payment - Consolidated Monthly PaymentThe difference between what you pay now vs. the consolidated loan payment.
Where:
Current Monthly Payment= Estimated payment on existing debts at current average rate over 60 monthsConsolidated Monthly Payment= Payment on consolidation loan at new rate and chosen termTotal Savings = (Current Payment × 60 - Debt) - (Consolidated Payment × Term - Debt)Compares total interest paid under current debts vs. the consolidation loan.
Where:
Current Payment= Monthly payment on existing debtsConsolidated Payment= Monthly payment on consolidation loanDebt= Total debt amountTerm= Consolidation loan term in monthsDebt consolidation can simplify payments and potentially save money on interest.
Lower interest rates and single payments make debt management easier.
Compare total costs, not just monthly payments, when considering consolidation.
Plan your finances
Last Updated: Feb 12, 2026
This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.