Debt Consolidation Calculator: method, checked example and practical limits
Compare current weighted-cost debt with a proposed consolidation loan including its fee. A monthly saving and a total-cost saving answer different questions when repayment terms differ.
Inputs used by this calculator
Debt Consolidation Calculator uses the fields below. The starting values reproduce the page example; replace them with values from the same units and time period before using the result.
| Input | Starting example | Accepted value | How it is used |
|---|---|---|---|
| Debt to consolidate ($) | 25,000 | 0.01 to 1000000000 | Selects the unit or conversion path used by Debt Consolidation Calculator. |
| Current weighted APR (%) | 19 | 0 to 100 | Supplies the current weighted apr (%) quantity used by the published equation or result breakdown. |
| Current monthly payment ($) | 850 | 0.01 to 1000000000 | Supplies the current monthly payment ($) quantity used by the published equation or result breakdown. |
| New loan APR (%) | 11 | 0 to 100 | Supplies the new loan apr (%) quantity used by the published equation or result breakdown. |
| New term (years) | 4 | 0.1 to 40 | Supplies the new term (years) quantity used by the published equation or result breakdown. |
| Origination fee (%) | 3 | 0 to 100 | Supplies the origination fee (%) quantity used by the published equation or result breakdown. |
Inputs and measurement conventions
The quantities used on this page are Debt to consolidate ($), Current weighted APR (%), Current monthly payment ($), New loan APR (%), New term (years), Origination fee (%). Start with values for the same situation and read the units attached to each field. The field reference below shows supported choices and numerical limits.
A financed fee earns interest too. Extending the term can reduce the payment while increasing the lifetime amount paid.
Method and equation
Price the new loan including its financed fee and compare its repayment total with the modeled current balance and payment.
Debt Consolidation Calculator uses the following stated relationship: new payment=financed amount×r/[1−(1+r)^−n]. Its assumptions determine which question the answer can resolve.
new payment=financed amount×r/[1−(1+r)^−n]Worked calculation with the starting values
Debt to consolidate ($): 25000; Current weighted APR (%): 19; Current monthly payment ($): 850; New loan APR (%): 11; New term (years): 4; Origination fee (%): 3. These starting values give -1,968.990103 new plan cost minus current plan. The calculation breakdown is Current payoff months: 40; Current interest: 8,914.056051; New payment: 665.5222072; New interest and fee: 6,945.065948.
A $25,000 balance can be compared against a four-year consolidation offer including its financed fee.
Reading the answer
A monthly saving and a total-cost saving answer different questions when repayment terms differ.
Current payoff months: 40; Current interest: 8,914.056051; New payment: 665.5222072; New interest and fee: 6,945.065948. These intermediate quantities make the stated Debt Consolidation Calculator model inspectable; they should be read together with the main answer rather than treated as independent guarantees.
Common errors and model boundaries
A financed fee earns interest too. Extending the term can reduce the payment while increasing the lifetime amount paid.
The current-plan side uses a constant weighted APR. Confirm fees, prepayment terms and whether old accounts will remain open.
Independent verification and next decision
Compare cash received, fees, payment schedule and total cost as well as the rate stated in each written offer.
For the Debt Consolidation Calculator method, compare new payment=financed amount×r/[1−(1+r)^−n] with the starting inputs and the calculation table. The linked Consumer Financial Protection Bureau: consumer tools and Investor.gov (SEC): compound interest calculator references identify the relevant definitions, conventions or domain limitations. Retain intermediate precision when comparing a manually worked answer.
Debt Consolidation Calculator worked-example ledger
| Quantity | Example value | Role |
|---|---|---|
| Debt to consolidate ($) | 25000 | Entered assumption |
| Current weighted APR (%) | 19 | Entered assumption |
| Current monthly payment ($) | 850 | Entered assumption |
| New loan APR (%) | 11 | Entered assumption |
| New term (years) | 4 | Entered assumption |
| Origination fee (%) | 3 | Entered assumption |
| Main answer | -1,968.990103 new plan cost minus current plan | Calculated from the starting inputs |
| Current payoff months | 40 | Intermediate or contextual output |
| Current interest | 8,914.056051 | Intermediate or contextual output |
| New payment | 665.5222072 | Intermediate or contextual output |
| New interest and fee | 6,945.065948 | Intermediate or contextual output |
Frequently asked questions
Should I compare only APR?
Compare cash received, fees, payment schedule and total cost as well as the rate stated in each written offer.
Which relationship does the Debt Consolidation Calculator use?
Price the new loan including its financed fee and compare its repayment total with the modeled current balance and payment. The displayed relationship is new payment=financed amount×r/[1−(1+r)^−n].
What do the starting values produce in the Debt Consolidation Calculator?
Debt to consolidate ($): 25000; Current weighted APR (%): 19; Current monthly payment ($): 850; New loan APR (%): 11; New term (years): 4; Origination fee (%): 3. These starting values give -1,968.990103 new plan cost minus current plan. The calculation breakdown is Current payoff months: 40; Current interest: 8,914.056051; New payment: 665.5222072; New interest and fee: 6,945.065948.
How should I interpret this Debt Consolidation Calculator answer?
A monthly saving and a total-cost saving answer different questions when repayment terms differ.
Which input mistake most affects the Debt Consolidation Calculator?
A financed fee earns interest too. Extending the term can reduce the payment while increasing the lifetime amount paid.
What is outside this Debt Consolidation Calculator model?
The current-plan side uses a constant weighted APR. Confirm fees, prepayment terms and whether old accounts will remain open.
What to keep in mind
The current-plan side uses a constant weighted APR. Confirm fees, prepayment terms and whether old accounts will remain open.
Results are rounded for display in US format, with money in dollars and cents; CSV exports keep full calculation precision. This is a calculation summary, not an official certificate.