Debt Consolidation Savings Calculator
Enter your existing debts and a proposed consolidation loan to see how much you could save in interest and monthly payments.
Existing Debts
Consolidation Loan
Formulas Used
Existing debt payoff simulation — each month:
Interest = Balance × (Annual Rate / 12) Balance = Balance + Interest − Monthly Payment (repeat until Balance ≤ 0)
Consolidation loan monthly payment (standard amortisation):
r = Annual Rate / 12
M = P × [r × (1 + r)ⁿ] / [(1 + r)ⁿ − 1]
where P = Total Balance + Origination Fee
n = Term (months)
M = Fixed Monthly Payment
Total interest on consolidation loan:
Total Interest = M × n − P
Savings:
Interest Savings = Current Total Interest − Consolidation Total Interest Monthly Savings = Current Total Payment − New Monthly Payment Time Savings = Longest Current Payoff − Consolidation Term
Assumptions & References
- Each existing debt is paid off using its stated fixed minimum monthly payment (no changes over time).
- The consolidation loan principal equals the sum of all debt balances plus any origination fee.
- Interest compounds monthly for all debts and the consolidation loan.
- "Payoff time" for current debts is the longest individual payoff period (debts are paid independently).
- A monthly payment that does not exceed the first month's interest on a debt is flagged as invalid.
- Origination fees are rolled into the loan principal, increasing the amount financed.
- Formula reference: standard amortisation — Consumer Financial Protection Bureau (CFPB), consumerfinance.gov.
- This calculator is for illustrative purposes only and does not constitute financial advice.