Debt Consolidation Calculator
Use this calculator to see how much you can save by consolidating your debts into a single loan.
Debts
| Debt name | Remaining balance | Monthly or min. payment | Interest rate |
|---|---|---|---|
| Credit card 1 | |||
| Credit card 2 | |||
| High interest debt |
Consolidation loan
| Loan amount | |
| Interest rate (%) | |
| Loan term (years) | |
| Loan term (months) | |
| Loan fee/points (%) |
Simplify Your Finances with the Debt Consolidation Calculator
Managing multiple debts with varying interest rates and payments can be overwhelming. If you’re struggling to keep up with different due dates and interest rates, a debt consolidation loan might be the solution you need. Our Debt Consolidation Calculator is designed to help you determine if consolidating your debts into a single loan could save you money and simplify your financial life.
What Is Debt Consolidation?
Debt consolidation involves taking out a single loan to pay off multiple debts. This can simplify your payments and potentially lower your overall interest rate, making it easier to manage your finances. Instead of juggling several monthly payments, you’ll have just one payment to make each month, often at a lower interest rate.
How the Debt Consolidation Calculator Works
The Debt Consolidation Calculator allows you to input details about your existing debts, including balances, interest rates, and monthly payments. You can then compare your current debt situation with a potential consolidation loan, taking into account factors such as:
- Loan Amount: The total amount of your new loan.
- Interest Rate: The interest rate on your consolidation loan.
- Loan Term: The length of time over which you’ll repay the loan.
- Loan Fees: Any fees associated with obtaining the loan, such as origination fees.
Example Calculation
Suppose you have three debts:
- Credit Card 1: $10,000 balance, 17.99% interest, $260 minimum payment
- Credit Card 2: $7,500 balance, 19.99% interest, $190 minimum payment
- High Interest Loan: $6,500 balance, 18.99% interest, $180 payment
You’re considering a consolidation loan for $25,000 with a 10.99% interest rate over 5 years, with a 5% loan fee. Our calculator shows that consolidating these debts could result in a single monthly payment of approximately $543, with total interest paid of $8,641 over the life of the loan. This might simplify your payments and potentially save you money on interest.
Benefits of Debt Consolidation
- Simplified Payments: Combining multiple debts into one loan means only one monthly payment to manage.
- Lower Interest Rates: If your consolidation loan has a lower interest rate than your existing debts, you can save on interest costs.
- Clear Debt-Free Timeline: With a fixed loan term, you’ll know exactly when you’ll be debt-free, helping you stay motivated and on track.
Is Debt Consolidation Right for You?
While debt consolidation can offer many benefits, it’s important to carefully consider your situation. If you qualify for a lower interest rate and can afford the new monthly payment, consolidation might be a smart move. However, if your spending habits haven’t changed, you could risk falling back into debt.
Final Thoughts
Debt consolidation can be a powerful tool for getting your finances back on track, reducing the stress of multiple payments, and saving money on interest. Use our Debt Consolidation Calculator to see if this strategy is right for you, and take the first step toward financial freedom.
Start simplifying your debt today—try our Debt Consolidation Calculator and take control of your finances.
