Debt Consolidation Calculator
Compare the combined cost of several separate debts against a single consolidation loan to see if consolidating could lower your interest or repayments.
Your results
Calculation breakdown
- Combined principal
- debt 1 + debt 2
- New repayment
- amortised payment at new rate and term
- Total interest
- total repaid − principal
Worked example
Combining a $6,000 card at 20% and a $9,000 loan at 12% into a $15,000 consolidation loan at 10.5% over 4 years gives one manageable monthly repayment, though check the new loan's total interest against staying on the separate debts.
Assumptions
- Ignores any establishment or exit fees on either the old or new loan.
- Assumes the full combined balance transfers into the new loan.
- A longer consolidation term can lower monthly repayments but increase total interest paid.
How this calculator works
This calculator adds up the repayments and interest cost of two existing debts and compares that to a single consolidation loan at a new rate and term. It helps you see whether rolling multiple debts into one loan genuinely reduces your interest cost, noting that a longer term can lower repayments but increase total interest.
Frequently asked questions
Does consolidating debt always save money?
Not always. A lower rate helps, but stretching the loan over a longer term can mean you pay more total interest even at a lower rate, so compare the total cost, not just the monthly repayment.
Are there fees for consolidation loans?
Many lenders charge an establishment fee and sometimes ongoing fees. Enter these into the loan fee impact calculator or add them to the consolidated principal here for a fair comparison.
What about balance transfer credit cards instead of a loan?
A balance transfer can work if you can clear the balance before the promotional rate ends; otherwise the reverted rate is often very high, so model both options separately.
Results are estimates only and are not financial, tax, legal or credit advice.