Debt Consolidation Calculator – NerdWallet



The debt consolidation calculator below can help you decide if consolidation is right for you. The calculator will suggest the best way to consolidate debt and evaluate your savings with a debt consolidation loan. you also can compare loan options based on your credit score.

Debt Consolidation Calculator

How to use a debt consolidation calculator

Step 1: Enter the balances, interest rates, and monthly payments that you are currently making against unsecured debts such as credit cards, personal loans, and payday loans.

Click Finish and look at the calculator’s results based on the numbers you entered:

  • Final balance: The sum of all your debts or whatever you owe.

  • Combined interest rate: Your weighted average interest rate on all debts that you enter in the calculator.

  • Total monthly payment: The amount you pay each month to pay off these debts, including interest.

  • When you are debt free: The amount of time until debt relief based on your current balance and monthly payments.

Step 2: Select a credit rating range to see your debt consolidation options, including personal loans. You will see typical annual interest rate ranges offered by lenders along with bad credit alternatives.

Lenders offering direct payments to lenders send your loans directly to your lenders, making it easier to pay off your debt.

Drag the sliders below the table to enter the estimated rate and the desired loan term (in years) for the new loan.

Step 3: Take a look at the comparison between your current debt and a new debt consolidation loan.

Debt consolidation makes the most sense when your new total payment is less than your current total payment and you are saving on interest costs.

What is Debt Consolidation?

Debt Consolidation consolidates your existing debts into one, ideally with a lower interest rate and shorter payback time, saving you money and time to pay off. This is often accomplished with debt consolidation loan, but there are other ways to consolidate debt depending on your specific situation.

Debt Consolidation Ways

  1. Debt consolidation loan: These loans, usually from an online lender, credit union or bank, provide a large amount of money to pay off multiple debts, leaving you with one monthly payment on the debt.

  2. Credit card for balance transfer: This option transfers credit card debt to a credit card with balance transfer, which is free of interest during the promotional period, usually 12 to 18 months.

  3. Loan secured by equity capitalA: If you own your home, you can get a home equity loan to pay off other debts, but you risk losing your home if you miss the payments.

  4. Retirement loan: If you have an employer-sponsored savings account or retirement account, you can withdraw some of this money to pay off your debts. The downside is fewer retirement funds, and if you cannot repay the loan, you will have to pay fines and taxes.

  5. Debt management plan: This option consolidates multiple debts into one monthly payment with a lower interest rate than most credit cards or loans, but it usually includes start-up and monthly fees, and it often takes three to five years to pay off the debt.

Which lender is right for me?

NerdWallet has checked over 30 lenders to help you choose the one that’s right for you. Below is a list of lenders that offer outstanding debt consolidation loans

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Other personal loan calculators

Debt to income ratio calculator: This calculator shows how your debt compares to your income. The ratio is one of the factors lenders use to determine if you can repay the loan.

Personal loan calculator: Use this calculator to find out approximate personal loan rates and payments and compare options based on your credit rating.


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