Debt Consolidation Calculator – Compare Interest & Monthly Payment

Combine multiple debts into a single loan estimate. Compare total interest, monthly payment, and payoff time to see potential savings.

Input-Validated
Instant Updates
Savings Chart
Estimated Interest Savings
₹0

Interest Comparison

Bars compare total interest paid with your current debts vs a single consolidation loan, based on the inputs and payoff rules below.

Related Tools

Loan EMI Calculator Credit Card Payoff Calculator Debt Snowball Calculator APR Calculator Budget Planner

Compare Your Debts vs One Consolidation Loan

Enter your existing debts and how you currently pay them, then model a new single loan with an optional upfront fee. Results update instantly.

₹6.0L
Use the sum of all balances you intend to consolidate (credit cards, personal loans, store loans, etc.).
24.0%
If you have multiple rates, use an approximate weighted average based on balances.
13.5%
Enter the APR offered by the lender (include any interest rate you expect to pay).
Choose how you currently pay: either a fixed monthly payment, or a target payoff time.
₹25.0K
This is the combined monthly outflow you currently pay across all debts.
48M
Typical consolidation loans range from 12–60 months. Longer terms reduce EMI but increase total interest.
1.5%
Optional lender fee. We add it to costs (but do not finance it unless you select that option below).
If financed, the fee increases the loan principal and interest cost. If paid upfront, it is a separate one-time cost.
Please enter valid positive values. If using "fixed monthly amount", your payment must be high enough to reduce the balance.
Monthly Payment Change
₹0
Estimated Interest Savings
₹0
Estimated Interest Savings
₹0
Current Monthly Payment ₹0
New Loan EMI ₹0
Current Total Interest ₹0
New Loan Total Interest ₹0
Upfront Fee Cost ₹0
Current Payoff Time 0 months
New Loan Term 0 months

Smart Tips

If your current payment is barely above interest, payoff can stretch dramatically. Increasing payment often beats refinancing.
Consolidation savings depend on the rate drop and whether you extend the term. A longer term can reduce EMI but raise total interest.
Fees matter: even a low APR may not help if origination fees are high and you pay off early.
After consolidating, avoid adding new debt—otherwise you can end up with both the new loan and new balances.
Use the "Current Payoff Method" toggle to compare: keep your same payment vs target a payoff timeline.

Interest Comparison

This chart compares interest under your current payoff vs the consolidation loan scenario.

How to Use Debt Consolidation Calculator?

1

Select Currency

Pick INR, USD, or GBP from the header or mobile menu. This tool defaults to INR since consolidation is widely used in India/Asia, but you can switch anytime.

2

Enter Current Debt & APR

Enter your total balance and a weighted current APR. If you have multiple debts, approximate based on balances and rates.

3

Choose How You Pay Today

Select "Fixed monthly amount" or "Pay off in fixed months". The calculator models your current plan using standard amortization.

4

Model the Consolidation Loan

Enter the new APR, term, and fee. Compare EMI, total interest, payoff time, and interest savings. Review the chart and tips.

Understanding Debt Consolidation Calculation

What is Debt Consolidation?

Debt consolidation is the process of replacing multiple debts with a single new loan. The goal is typically to simplify payments and potentially reduce total interest cost by using a lower APR or a more predictable repayment schedule.

How is Debt Consolidation Calculated?

This calculator compares two scenarios: (1) your current debts approximated as one combined balance at a weighted APR with your chosen payoff method, and (2) a single consolidation loan with a new APR and fixed term. We compute monthly interest and principal using amortization rules and then compare total interest (plus any fees) to estimate savings.

Core Formulas Used

For a loan with principal P, monthly rate r, and term n months, the fixed EMI is: EMI = P × r × (1 + r)n / ((1 + r)n − 1). Total interest is the sum of monthly interest over the amortization schedule (or equivalently total paid minus principal, in fixed-term cases).

Factors Affecting Savings

Uses & Benefits

Side-by-side comparison

Understand how a single consolidation loan changes your EMI, payoff time, and total interest versus your current plan.

Interest savings visibility

See estimated interest savings (after fees) and validate if the refinance is worth it for your situation.

Cash-flow planning

Estimate monthly outflow changes and decide whether to keep paying the same amount to finish faster.

Fee-aware decisions

Model origination fees as paid upfront or financed to understand real total cost differences.

Frequently Asked Questions

What does "Weighted Current APR" mean?
If you have multiple debts with different rates, a weighted APR is an average that accounts for balances. For example, a high balance at a lower rate may dominate the average compared to a small balance at a higher rate.
Why can consolidation reduce EMI but increase total interest?
Extending the repayment term lowers the monthly payment by spreading repayment over more months. But paying interest for longer can increase the total interest, even if the APR is lower.
Does this include variable rates or promotional APR periods?
No. This tool assumes fixed APRs in both scenarios for clarity. Variable rates, teaser APRs, or changing rates will cause real outcomes to differ.
What if my current monthly payment is too low?
If the payment does not exceed monthly interest, the balance will not decrease and payoff becomes impossible under a fixed-payment model. The tool will warn you and not compute invalid payoff results.
Should I pay the fee upfront or finance it?
Paying upfront avoids paying interest on the fee, but requires cash today. Financing may preserve cash flow but increases principal and interest cost. This calculator shows both approaches.

Explore More Financial Tools

Plan smarter with calculators built for real-world decisions.

Loan EMI Credit Card Payoff APR View All

Trust & Notes

Privacy Friendly

All calculations run locally in your browser.

Transparent Math

Uses standard amortization and payoff simulation.

Input Validation

Prevents impossible payoff scenarios.

For Estimation

Actual lender APR/fees and repayment behavior matter.

Disclaimer: This debt consolidation calculator provides an estimate using fixed APR assumptions and standard loan amortization. Real-world outcomes depend on lender terms (APR, compounding method, fees, insurance), payment timing, late fees, revolving credit behavior, and any prepayment penalties. This tool is informational and does not constitute financial advice.