How it works
How debt consolidation changes payoff
Debt consolidation combines multiple debts into one new loan or payoff plan. The goal is often to replace high-interest revolving debt with a fixed payment, a lower APR, or a clearer payoff date. It can simplify monthly payments, but it is not automatically cheaper.
This calculator compares your current estimated payoff path with a possible consolidation loan. It includes the new APR, term length, and an estimated origination fee so the comparison is closer to the real cost of borrowing.
A consolidation loan can help when the APR is meaningfully lower and the payment is affordable. It can hurt when fees are high, the term is stretched too long, or the borrower keeps adding new credit card balances after consolidating. The best result usually comes when consolidation is paired with a firm no-new-debt plan.
Use the output to compare monthly payment, payoff time, total interest, and net difference. This is an educational estimate only, not a loan offer or financial advice. Check lender terms carefully before applying.
Compare repayment cost, not just the payment
The estimate adds the percentage origination fee to the balance being financed, calculates a level monthly payment for the new term, and compares its interest plus fee with your current fixed-payment path. Required payments are rounded up to cents and the last payment may be smaller.
When consolidating several debts, the current APR field represents a simplified blended rate. An amount-weighted starting rate is the sum of each balance multiplied by its rate, divided by the total balance. It cannot reproduce every separate account's changing allocation; use the multiple-debt calculator for that detail.
A longer term may reduce the monthly payment while increasing total cost. A negative net difference means the modeled new loan costs more after fees. If the lender deducts fees from the proceeds rather than adding them to the balance, use the actual financed amount and cash received to compare the offer. No approval or offered rate is predicted.
Sources and calculation notes
Our numerical examples use the monthly model described in our methodology. For account rules and terminology, see:
Content updated September 21, 2026. Examples are illustrations, not lender offers or account-specific payoff quotes.