How to use this debt consolidation calculator
Choose Current debts vs one consolidation loan when you want to compare your existing repayment path with a single consolidation offer.
You can enter up to five current debts. For each debt, enter the remaining balance, interest rate, and fixed monthly payment you are currently making.
Then enter the consolidation loan's interest rate, term, and origination fee. The calculator uses those assumptions to compare the consolidation option with the debts you entered.
Choose Compare two consolidation offers when you want to compare two different consolidation loans against the same underlying debts. Each offer can use its own interest rate, term, and origination fee.
Understanding your current-debt results
The calculator shows the combined balance and total monthly payment associated with the current debts you enter.
It also estimates the remaining interest, total amount paid, and time until those debts are repaid if you continue making the entered monthly payments.
Each monthly payment remains associated with its own debt until that debt is paid off. The calculator does not automatically redirect a payment from a paid-off debt to another balance.
This means the current-debt estimate is not a debt snowball or debt avalanche strategy. If you plan to redirect freed-up payments as debts are eliminated, your actual repayment path could differ from this estimate.
Understanding the consolidation-loan results
The consolidation results show the estimated loan principal, origination fee, cash available from the loan, monthly payment, total interest, total payments, financing cost, and loan term.
An origination fee can affect the relationship between the amount borrowed and the usable proceeds available to pay off existing debts. The calculator accounts for the fee when presenting the consolidation estimate.
Total financing cost includes both estimated loan interest and the entered origination fee, giving you a broader view of borrowing cost than interest alone.
What to compare when considering debt consolidation
Monthly payment
A consolidation loan may lower the amount you pay each month, particularly if it has a different interest rate or a longer repayment term.
A lower monthly payment can improve short-term cash flow, but it does not necessarily mean the new loan costs less overall.
Repayment time
Compare how long your current debts may take to repay with the term of the proposed consolidation loan.
A longer consolidation term can reduce the monthly payment while keeping you in debt for more time. A shorter term may require a higher monthly payment but could reduce the length of the repayment period.
Consider the payment and repayment period together rather than evaluating either number on its own.
Interest, fees, and total financing cost
A consolidation offer can change borrowing costs through both its interest rate and any origination fee.
For that reason, compare the estimated interest and total financing cost along with the monthly payment. An offer with the lowest payment is not automatically the lowest-cost option.
Why origination fees matter
An origination fee can reduce the usable proceeds you receive from a consolidation loan and increase the overall cost of borrowing.
Two loans intended to consolidate the same debts can therefore produce different borrowing amounts, fees, payments, and financing costs even when they appear similar at first glance.
This can be especially relevant when comparing a lower-rate loan that charges an origination fee with an offer that has a higher rate but little or no upfront fee.
Comparing two consolidation offers
In comparison mode, both consolidation offers are evaluated against the same debts while allowing each offer to have its own interest rate, repayment term, and origination fee.
The results help you compare differences in monthly payment, estimated interest, origination fees, financing cost, and repayment term.
There is no single number that automatically identifies the better offer. A lower payment, lower rate, shorter term, or smaller fee may each involve different tradeoffs.
Use the comparison to see how those differences fit your priorities, including monthly affordability and the overall cost and length of repayment.
When consolidation may change more than your payment
Debt consolidation can change several parts of your repayment picture at the same time.
A new loan may change the monthly payment, repayment period, interest cost, and the effect of any origination fee.
For that reason, comparing only the current and proposed monthly payments can give an incomplete picture. Consider how long repayment lasts and how much the financing may cost in total as well.
Important assumptions and limitations
This calculator is a debt-planning illustration, not a lender quote, credit decision, approval, or recommendation to consolidate debt.
The current-debt estimate uses the balances, interest rates, and fixed monthly payments you enter. It does not assume that payments freed up after one debt is repaid are redirected to another debt.
The consolidation estimates use the loan rates, terms, and origination fees you enter. Actual lender calculations, fees, payment schedules, and available loan amounts may differ.
The calculator does not account for additional borrowing, missed or late payments, changes in rates or payment amounts after the calculation, or lender-specific charges that are not included in your inputs.
Actual savings or costs can therefore differ from the estimated results.
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Learn more about debt consolidation and repayment
Visit MarketReview's Loans section for more information about consolidating debt, repayment terms, borrowing costs, personal loans, and the factors that can affect the cost and duration of repayment.