DayCents

Loans

Debt Consolidation Calculator

Consolidating rolls several debts into one loan, ideally at a lower rate. Enter your total balance, your current rate and payment, and the new loan's terms to see the new monthly payment, the total interest, and how much consolidating would actually save.

The blended rate across your current debts (credit cards often 20%+).

New monthly payment

$996

One fixed payment replacing your current debts.

Interest on the new loan
$5,871
Interest finishing as-is
$16,788

If you keep your current payment until payoff.

Interest saved by consolidating
$10,917

Lower rate wins over the loan.

How this calculator works

The new loan's payment fully amortizes your balance over its term at its APR; new interest = payments × months − balance. Current interest assumes you hold today's payment until the debt is cleared (interest = payment × months to payoff − balance). Interest saved is the difference.

Estimates only, and they ignore balance-transfer or origination fees, which can offset savings — add those into your comparison. If your current payment doesn't cover the interest, the debt never pays off at that rate, and no honest comparison is possible.

Try an example

Frequently asked questions

Does consolidating debt save money?

It saves money when the new loan's rate is lower and the term isn't so long that the extra months cancel the savings. Moving high-interest credit card balances (often 20%+) to a personal loan around 10–12% typically cuts both the rate and total interest. This calculator shows your specific comparison.

Does debt consolidation hurt your credit?

Usually only briefly. Applying triggers a small, temporary dip from the hard inquiry, and a new account lowers your average account age. But paying off credit cards drops your utilization — a big factor — which often raises your score within a few months, provided you don't run the cards back up.

What's the catch with a lower monthly payment?

A lower payment often comes from a longer term, which can mean more total interest even at a lower rate. Always compare total interest, not just the monthly payment. The best consolidation lowers the rate and keeps the term short enough to actually save — this tool flags when it doesn't.

What are the ways to consolidate debt?

Common options are a personal (debt consolidation) loan, a 0% balance-transfer credit card, or a home equity loan/HELOC. Balance transfers can be cheapest if you clear the balance in the promo window; home equity offers low rates but secures the debt against your house. Match the tool to your payoff plan.

Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.