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.