Debt Consolidation Calculator
Compare your current debt payments with a single consolidation loan. See monthly and total savings across any set of debts.
Your current debts
Consolidated payment
$133.47
Was $190.99 across your debts
Monthly savings
$57.52
Total savings
$34
Loan term
60 months
$8,008 total
Consolidation wins when the new rate is lower than the average of your current debts. Watch out: a longer term can cut the payment while still raising the total interest.
How it works
Consolidated payment = amortising formula on total debt at the new rate. Savings = old total interest − new total interest.
Example: $30,000 debts at 22% avg consolidated to 10% over 5 years → payment drops and total interest falls by roughly half.
Last updated: April 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use the debt consolidation calculator when you are juggling several loans or card balances and a bank offers to roll them into one personal loan. Consolidation only helps if the single loan's rate and tenure actually reduce your total interest, and this tool shows the comparison instead of leaving it to the sales pitch. Enter each of your current debts with its rate and remaining term, add the proposed loan's rate and tenure, and read the monthly payment and total interest for both scenarios side by side. Indian borrowers with two or three cards and a personal loan often find that a longer consolidation term lowers the EMI but increases total interest — the calculator makes that trade-off explicit before you sign, so the decision rests on numbers rather than the convenience of one monthly payment.
How to Use This Calculator
- Step 1: Add each debt with its balance, rate and remaining term — card dues, personal loans, vehicle loans and so on.
- Step 2: Enter the consolidation loan rate and term offered by the bank or NBFC.
- Step 3: Review the current monthly payments against the single consolidated payment shown by the calculator.
- Step 4: Read the monthly and total savings — if the monthly saving is negative, the consolidation costs more.
Worked Example
Suppose you owe ₹1,50,000 on a card at 42% (EMI about ₹7,393 for 3 years) and ₹3,00,000 on a personal loan at 15% (EMI about ₹10,400 for 3 years). Together that is ₹17,792 a month and about ₹6,40,500 in total. A consolidation loan of ₹4,50,000 at 13% for 4 years works out to an EMI of about ₹12,072 and a total of about ₹5,79,500 — saving roughly ₹5,700 a month and ₹61,000 over the full term.
Tips and Common Mistakes
- •Tip 1: Consolidation only helps when the new rate is clearly below your blended existing rate — a 13% loan replacing a 42% card is the usual win.
- •Tip 2: Extending the term cuts the EMI but can raise total interest; compare totals, not just the monthly figure.
- •Tip 3: After consolidating, stop using the paid-off card — running it up again defeats the plan.
- ✗Mistake 1: Comparing a longer consolidation term against the shorter original terms — part of the monthly saving is a term effect.
- ✗Mistake 2: Ignoring processing fees on the new loan and prepayment penalties on the old ones, which reduce the real saving.
Frequently Asked Questions
Is debt consolidation a good idea?
It is worth it when the consolidated loan's interest rate is meaningfully lower than your combined current rates and you can afford the new payment. This calculator compares total interest before and after.
How do I calculate my weighted average interest rate?
Multiply each debt's balance by its rate, sum them, and divide by the total balance. The result is the break-even rate — consolidation only saves money if your new rate is below it.
How long will it take to pay off consolidated debt?
Consolidation loans typically run 3–7 years. A longer term lowers payments but can add interest; a shorter term costs less overall. The calculator shows the payoff path for your term.
Is this debt consolidation calculator free to use?
Yes, True Calculator's debt consolidation calculator is completely free with no sign-up, no app install and no usage limits.
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