Debt Consolidation Calculator

The calculator below compares the APR (Annual Percentage Rate) of the debts and the real APR after the adjustment of the consolidation loan fee. It also compares the monthly payment, payoff length, total interests, etc. Generally, the fee-adjusted APR is the real financial cost of the debts or loans. Therefore it is the major indicator for debt consolidation loan selection.

  Debt Name Remaining Balance Monthly or Min. Payment Interest Rate

Consolidation Loan
Loan Amount 
Interest Rate 
Loan Term
Loan Fee/Points

RelatedDebt Payoff Calculator | APR Calculator

Debt Consolidation

Debt consolidation is a form of debt restructuring that combines several loans into one, mainly for two reasons: to lower either the interest rate or to lower the monthly payment amount. With a good consolidation loan, it is possible to lower both. Another possible reason people consolidate loans is simplicity; instead of dealing with multiple different loans, debts, and payments each month, a consolidated loan only requires one, relieving hassle and saving time.

Most loans will require the payment of upfront fees. As a result, the real cost (real APR) of loans is higher than the interest rates advertised by lenders. This calculator can determine the real APR of consolidated loans after adjusting for applicable fees, which is the more accurate and comparable indicator the financial cost of a loan

Home equity loans, home equity line of credits, and cash-out refinances are common sources of funds used for debt consolidation. These are secured loans that are tied to collateral, such as real estate properties, generally lower risk for lenders, which lowers interest rates. On the other hand, unsecured loans can also used to consolidate debts, such as personal loans or balance-transfer credit card. They tend to have higher interest rates and lower loan limits because there is no collateral attached to them.


Before consolidating loans, there are some considerations to keep in mind.

Fix the Real Problem First

While effective loan consolidation can possibly lower financial burden, it is worth considering tackling the root of the burdens first, whatever it may be. For many people, this is a change in habits such as spending less and saving more. For others, it may be a journey towards learning how to live within or below their means. For some cases, it can even be seeking a higher income. These are few examples of methods will be more effective in the long term in erasing debt, as opposed to just simply consolidating them. In any case, budgets are practical ways to sort financial situations before the question of whether or not to consolidate loans pops up.