DC Calculator

Debt Consolidation Calculator See if consolidating credit cards, loans, or other debt saves you money — with realistic fe...

Debt Consolidation Calculator

See if consolidating credit cards, loans, or other debt saves you money — with realistic fees, rates, and payoff timelines.

Current Debts

Consolidation Options

Add each debt you want to consolidate (max 6).

Personal Loan

APR (%)

Term (Months) 24 months 36 months 48 months 60 months

Origination Fee (%)

Balance Transfer Card

Intro 0% Period (Months)

Post-Intro APR (%)

Balance Transfer Fee (%)

HELOC / Home Equity Loan

APR (%)

Term (Months)

Closing Costs ($)

$0

New Monthly Payment

—

Months Saved

$0

Interest Saved

$0

Total Debt (incl. fees)

Payoff Timeline Comparison

How Debt Consolidation Works

Debt consolidation combines multiple high-interest debts into a single lower-interest loan or credit line — simplifying payments and often reducing total interest.

Three Common Methods:

• Personal Loan: Fixed rate, fixed term (2–5 years). Best for credit scores ≥680. Avg. 2025 rate: 12.5%.
• Balance Transfer Card: 0% intro APR (12–21 months), then variable rate. Ideal if you can pay off in intro period.
• HELOC: Secured by home equity. Lower rates (7.5% avg), but risks foreclosure if you default.

Example: $25,000 debt at 19% APR → $740/mo for 4.3 years, $12,400 interest.
Consolidated at 9.9% over 5 years → $528/mo, $5,200 interest → **$7,200 saved**.

When Consolidation Backfires

⚠️ Consolidation can *increase* total cost if:

• Extending the term — $30K over 7 years at 10% = $11,400 interest vs. $8,200 over 3 years.
• Ignoring fees — A 5% origination fee on $20K = $1,000 added to debt.
• Running up cards again — 37% of people accumulate *more* debt after consolidation (NY Fed).
• Using HELOC for unsecured debt — Turning unsecured credit card debt into secured home debt = high risk.

✅ Safe only if: You stop using old cards, have a budget, and can afford the new payment.

Credit Score Impact

Short-term (1–3 months):

• Hard inquiry (-5 to -10 points)
• Lower average account age (if closing old cards)

Long-term (6+ months):

• Lower credit utilization (biggest boost — e.g., from 85% → 30%)
• On-time payments on new loan (positive history)

→ Most people see a **net gain of 20–50 points** within a year if they manage the new loan responsibly.

How to Use This Calculator

1. Add each debt: balance, APR, minimum payment.
2. Switch to “Consolidation Options” tab.
3. Enter realistic rates, terms, and fees for your chosen method.
4. Click “Calculate”.

You’ll see:

• New monthly payment
• Months & interest saved
• Total debt (including fees)
• Payoff timeline comparison chart

Note: Assumes no new debt, fixed rates, and on-time payments.