How to calculate debt consolidation
Compare total cost: monthly payment × number of months, before vs after.
Worked example. You'd save: $6,248.
Example inputs — Total debt to consolidate: $15,000; Current average rate: 22%; Years to pay off currently: 5; Consolidation loan rate: 11%; Consolidation loan term (years): 4. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
Consolidating high-interest debt (like credit cards) into one lower-rate loan can cut both your monthly payment and total interest — as long as the new term isn't stretched too far.
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
Does consolidation hurt my credit?
A new loan causes a small temporary dip, but paying off cards usually helps your score within months.