Using the Debt Consolidation Calculator
Use remaining balances and remaining terms for the current debts. Past interest is already paid and should not enter a forward-looking comparison. Include financed fees in the new loan so the new offer is not made to look artificially cheaper.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Current balances
- 5000, 3000
- Current annual rates (%)
- 18, 12
- Remaining terms (months)
- 36, 24
- New annual rate (%)
- 8
- New term (months)
- 36
- Financed fees
- 0
Example result
- New monthly payment
- 250.69
- Current remaining total payments
- 9,896.72
- New total payments
- 9,024.87
- Total savings
- 871.85
Method and assumptions
Compares remaining amortized payments. Fees are financed in the new loan.
Compare the whole borrowing commitment
When comparing loan scenarios, change one assumption at a time. First compare terms at the same rate and balance, then compare rates over the same term. This makes it easier to see why the monthly payment changes. Keep any upfront costs alongside the result so that a lower installment does not hide a more expensive agreement.
Common question
Does the calculation include an early-payoff penalty?
Not automatically. If a penalty will be financed into the new loan, include it with financed fees. Costs paid separately need to be added to your comparison outside the tool.
Guide updated .