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    Debt consolidation loan calculator

    Enter each debt's balance, APR, and monthly payment, then a loan amount, rate, term, and any origination fee. This page compares the monthly payment, months to payoff, total interest, and total cost, including a fee you type. The figures are math on those entries. Real offers depend on the lender, your credit, and underwriting. This calculator is education, not an offer to lend.

    Every field starts empty. Type figures from your own statements and from a loan disclosure you already have. A placeholder is a label, not a sample rate, term, or fee.

    Debt 1
    Debt 2
    Consolidation loan to compare

    This field starts empty. The estimate divides the rate you type by 12 and uses that as the monthly interest rate. It does not compute the annual percentage rate in Regulation Z.

    Leave this blank to leave a fee out of the total. A fee you type is added to total cost. It is not a fee quote. The Federal Trade Commission says one point equals one percent of the amount you borrow. Type that amount in dollars if you want it in this estimate.

    Current debts

    Enter a balance, an APR, and a monthly payment for at least one debt. Nothing is filled in for you.

    Consolidation loan

    Enter a loan amount, a rate, and a term in months. The origination fee is optional and starts blank.

    These figures are math on the numbers you enter. They are not a payment quote. Real offers depend on the lender, your credit, and underwriting. This calculator is education, not an offer to lend.

    How to use it

    How to use this calculator

    For each debt, type the balance, the APR, and the monthly payment you want this estimate to use. Use a row only when you are ready to type all three. Add a row for another debt. Remove a row you do not want in the estimate.

    For the loan, type an amount, a rate, and a term in whole months. Type an origination fee only when you want that fee in the total cost. Leave the fee blank to leave it out. This page does not copy your debt balances into the loan amount.

    Read the two columns after the fields you are using are filled in. For one credit card, with no second debt and no new loan, use the credit card payoff calculator. To read how a personal loan and a debt consolidation loan differ, see personal loan vs debt consolidation loan.

    What the figures mean

    What these numbers do and do not mean

    The current column adds the payments you enter. Months to payoff is the month when the last of those debts is paid in the estimate. Total interest adds the interest on each debt. Total cost on that side is balances plus interest. The loan column uses the amount, rate, and term you enter. Its total cost adds an origination fee you type.

    The formula for the loan payment is standard amortization. Let r equal the rate you enter divided by 100, then divided by 12. Let n equal the term in months. When r is above zero, the scheduled payment equals the loan amount times r times (1 + r) to the n, divided by (1 + r) to the n minus 1. This page rounds that payment up to the next cent. When r is zero, the scheduled payment is the loan amount divided by n, rounded up to the next cent. Each month, interest equals the unpaid balance times r, rounded to the nearest cent. The payment is applied after that interest. The last payment is the remaining balance plus that month's interest when that sum is smaller than the scheduled payment.

    These figures do not mean a lender will offer that payment, rate, term, or fee. They leave out new charges, fees you did not type, a rate that changes later, and a teaser rate that expires. This page uses a monthly rate, the rate you enter divided by 12, on one balance per debt. A difference between the columns is only a difference between these estimates. Real offers depend on the lender, your credit, and underwriting. This calculator is education, not an offer to lend.

    APR and fees

    The rate you type is not a Regulation Z APR

    Regulation Z, 12 CFR 1026.22(a)(1), says the annual percentage rate is a measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made. The regulation determines it with the actuarial method or the United States Rule method. Appendix J to that part gives the actuarial equations.

    Section 1026.4(a) says the finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include a charge of a type payable in a comparable cash transaction. Section 1026.4(b) lists examples, including interest, and points, loan fees, and similar charges, except charges that section specifically excludes.

    Interest on the unpaid balance is one part of that cost. When a finance charge other than that interest changes the value you receive or the payments you make, the annual percentage rate in section 1026.22 is not the same number as the interest rate. This calculator does not compute that annual percentage rate. It divides the rate you type by 12 and adds a fee you type to total cost, on top of the amount and the interest. The fee is not financed and it is not deducted from the proceeds in this math. If your disclosure's APR already includes a fee, leave the fee field blank so you do not count the fee twice.

    The Federal Trade Commission says most consolidation loans have costs. In addition to interest, you may have to pay points, with one point equal to one percent of the amount you borrow.

    Before a new loan

    What the CFPB and the FTC say about consolidation

    The Consumer Financial Protection Bureau says banks, credit unions, and installment loan lenders may offer a debt consolidation loan that converts many debts into one loan payment. The offer might be for a lower interest rate than you pay now. A lower monthly payment may exist because you pay over a longer time. With fees or costs, you could pay more overall than if you kept making your other payments. Many low rates may be teaser rates that last only for a time, and the lender may raise the rate after that.

    The CFPB describes a debt consolidation loan as money you borrow to repay separate loans and pay back as one amount over time. That simplifies the number of payments. The same page says credit counseling organizations are usually nonprofits. They cannot erase your debts. Under a debt management plan you pay the counseling organization, and it pays your creditors. Counselors work to lower the monthly payment. They might get more time to repay or a lower interest rate, and they do not always negotiate a reduction in the amount you owe. Debt settlement companies, the CFPB says, offer to remove debts for a fee and cannot erase all of your debts. The CFPB says many companies that advertise consolidation may actually be debt settlement companies, which often charge up-front fees and may tell you to stop paying creditors.

    The FTC says some consolidation loans use your home as collateral, including a second mortgage or a home equity line of credit. If you cannot make the payments, or payments are late, you could lose your home. The CFPB says that if you do not repay a home equity loan you could lose your home in foreclosure, and that closing costs can apply. This site does not offer a home equity loan or a home equity line of credit.

    If spending is above income, the CFPB says a consolidation loan probably will not help unless you spend less or earn more. Nonprofit credit counseling can advise you on a budget and on paying debts. This calculator does not request a credit report, and it is not an offer to lend.

    Prequalification is separate from this calculator. Prequalification uses a soft credit inquiry and does not impact your credit score. It is not an offer to lend. If you choose to continue with a full application, a hard credit inquiry may be required and could impact your credit score.

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    FAQ

    Common questions

    It uses only the balances, rates, payments, term, and fee you type. For each current debt, the monthly rate is the APR you enter divided by 12. Interest each month is that rate times the balance, rounded to the nearest cent, and then the payment you enter is applied. Months to payoff on the current side is the longest of those debts, because the estimate pays them in the same months. Total interest adds each debt. Total cost on the current side is the balances plus that interest. A debt's payment stops in the estimate after that debt is paid off. For the loan, the scheduled payment uses standard amortization. The monthly rate r is the rate you enter divided by 12. When r is above zero, the payment is the amount times r times (1 + r) to the n, divided by (1 + r) to the n minus 1, where n is the term in months. That payment is rounded up to the next cent. When the rate is zero, the payment is the amount divided by the number of months, rounded up to the next cent. The same cent rounding is applied each month. The last payment is smaller when the remaining balance plus that month's interest is below the scheduled payment. Any origination fee you enter is added to total cost and is not part of the interest math. If a payment is less than or equal to the first month of interest, that debt does not pay off in this estimate.
    Regulation Z, 12 CFR 1026.22(a)(1), says the annual percentage rate is a measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made. It is determined in accordance with the actuarial method or the United States Rule method. Appendix J to Regulation Z sets out equations for the actuarial method. Section 1026.4(a) says the finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include a charge of a type payable in a comparable cash transaction. Section 1026.4(b) lists examples of finance charges, including interest, and points, loan fees, and similar charges, except charges specifically excluded later in that section. A rate used only to compute interest on the unpaid balance is not the annual percentage rate in section 1026.22 when other finance charges change the value you receive or the payments you make. This calculator does not compute that annual percentage rate. It divides the rate you type by 12, applies it to the loan amount you type, and adds a fee you type onto total cost. The fee is not subtracted from the amount and is not added to the balance. If the rate you type already reflects a fee, leave the fee blank so this estimate does not count that fee a second time.
    The Consumer Financial Protection Bureau says banks, credit unions, and installment loan lenders may offer a debt consolidation loan that converts many debts into one loan payment, and that the offer might be for a lower interest rate than you pay now. The CFPB also says the monthly payment might be lower because you pay over a longer time, and that with fees or costs you could pay more overall than if you continued your other payments. Many of the low rates may be teaser rates that last only for a time. After that, the lender may increase the rate. This page does not apply a teaser rate. It uses one rate for the whole term you enter. On a separate CFPB page, a debt consolidation loan might have a lower interest rate than the debts, and after a teaser rate ends the payments could go up. Taking the length of the loan, fees, and costs into account, you might pay more than you would have paid on the original debts. A difference between the two columns is only a difference between these estimates.
    The Consumer Financial Protection Bureau says credit counseling organizations are usually nonprofits that advise you on managing your money and debts. They cannot erase your debts. Under a debt management plan, you make a single payment to the counseling organization each month or pay period, and that organization pays your creditors. Counselors do not always negotiate reductions in the amounts you owe. They work to lower the overall monthly payment. They might get a creditor to lengthen the time you have to repay, or to lower the interest rate. The CFPB says a credit counselor never advises you to stop paying your debt. The CFPB says a debt consolidation loan is money you borrow to repay separate loans and then pay back as one amount over time. That simplifies the number of payments. Debt settlement is different. The CFPB says debt settlement companies offer to remove your debts for a fee, typically with a lump sum you set aside first. They cannot erase all of your debts, and many lenders do not negotiate with them. The CFPB's page on consolidating credit card debt says many companies that advertise consolidation may actually be debt settlement companies, which often charge up-front fees and may convince you to stop paying your debts and instead transfer money into a special account.
    The Federal Trade Commission says this kind of loan consolidates your debts into a single loan with one monthly payment. Ways to do that include a second mortgage or a home equity line of credit, or a personal debt consolidation loan from a bank or finance company. The FTC says some of these loans require you to put up your home as collateral. If you cannot make the payments, or if your payments are late, you could lose your home. The FTC says most consolidation loans have costs. In addition to interest, you may have to pay points, with one point equal to one percent of the amount you borrow. The FTC says it can be an expensive way to get money, so do some calculations to see if it is worth it to you. The Consumer Financial Protection Bureau says a home equity loan may offer a lower interest rate than other loans, and that using one to consolidate credit card debt is risky. If you do not pay the loan back, you could lose your home in foreclosure. You may also have closing costs. This page does not offer a home equity loan or a home equity line of credit. It only does the math you set up.
    No. This calculator uses the numbers you type. It does not request a credit report. The results are not a payment quote. Real offers depend on the lender, your credit, and underwriting. This calculator is education, not an offer to lend. If you are spending more than you earn, the Consumer Financial Protection Bureau says a debt consolidation loan probably will not help you get out of debt unless you reduce your spending or increase your income. The CFPB also says nonprofit credit counseling organizations can advise you on managing your money and paying off debts.

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