Debt Consolidation Loan Calculator
Debt Consolidation Loan Calculator
Estimate the monthly payment and total interest on a consolidation loan, and compare it to what you pay now. Nothing is stored.
Estimate only. Real loan offers depend on your credit, income, and lender. A loan does not reduce what you owe; it changes the rate and schedule. Consolidation is not the same as debt settlement.
How a consolidation loan works
A debt consolidation loan replaces several balances with a single new loan, ideally at a lower interest rate, leaving you with one monthly payment instead of many. The calculator estimates that payment and the total interest over the term, and, if you enter what you pay now, shows the difference. Consolidation changes the rate and schedule; it does not reduce the amount you owe.
When consolidation helps, and when it does not
Consolidation tends to help when you can qualify for a rate meaningfully lower than your current cards and you stop adding new balances. It helps less if your credit only qualifies you for a rate similar to what you already pay, or if a longer term lowers the monthly payment but raises the total interest. And it does nothing if the underlying spending that created the debt continues.
Consolidation versus settlement
Consolidation and settlement are often confused but are very different. A consolidation loan pays your debts in full and you repay the loan, so your credit is generally preserved. Settlement negotiates to pay less than the full balance, which can reduce what you owe but may affect your credit and have tax consequences. Which one fits depends on whether you can qualify for and afford a loan, and on how deep the debt is.
How this calculator works
This tool uses standard loan amortization to estimate a consolidation-loan payment: the monthly payment is the amount financed times the monthly rate, divided by one minus (one plus the monthly rate) to the negative number of months. It also totals the interest over the term and, if you enter your current payments, shows the difference. A consolidation loan changes your rate and schedule; it does not reduce the principal you owe.
Sources and references
These figures come from primary sources, which are updated as the rules change:
Frequently Asked Questions
How is a debt consolidation loan payment calculated?
The monthly payment is standard loan amortization based on the amount financed, the interest rate, and the term. A longer term lowers the monthly payment but increases total interest. The calculator on this page computes the payment, total interest, and total repaid for your numbers.
Does a consolidation loan reduce how much I owe?
No. A consolidation loan pays off your existing balances and you repay the loan instead, so the principal is the same. Its value comes from potentially lowering your interest rate and simplifying several payments into one, not from reducing the debt itself.
Is a consolidation loan better than debt settlement?
They serve different situations. A consolidation loan repays your debts in full at, ideally, a lower rate and generally preserves your credit. Settlement negotiates to pay less than the full balance, which can reduce what you owe but may lower your credit and create taxable forgiven debt. The right choice depends on whether you can qualify for a loan and how deep the debt is.
What credit score do I need to consolidate debt?
Lenders vary, but the lower rates that make consolidation worthwhile usually require good credit. If your credit only qualifies you for a rate close to what you already pay, a consolidation loan may not save much, and other options could fit better.
Will consolidating my debt hurt my credit?
Applying for a loan causes a small, temporary dip from the hard inquiry, but consolidation generally preserves credit because your debts are paid in full. Missing payments on the new loan, or continuing to run up the cards you paid off, are the bigger risks.
Does debt consolidation hurt your credit?
Usually only briefly. Applying causes a small dip from the hard inquiry, but because a consolidation loan repays your balances in full, it generally preserves or improves credit over time if you make the new payments on schedule and do not run the old cards back up.
Is consolidation or settlement better?
They fit different situations. Consolidation repays the full balance at, ideally, a lower rate and generally preserves credit, which suits people who can still qualify for a good rate. Settlement reduces the balance but can hurt credit and create taxable forgiven debt, and tends to fit people already behind.
What credit score do I need to consolidate debt?
Lenders vary, but the low rates that make consolidation worthwhile usually require good credit. If you only qualify for a rate close to what you already pay, consolidation may save little, and another option could fit better.
Does CuraDebt make consolidation loans, and is it a lender?
CuraDebt is a free service that reviews the information you submit and, where appropriate and permitted by law, matches you with independent, licensed providers for debt relief or tax resolution. CuraDebt is not a law firm and does not provide legal or tax advice. Results vary and are not guaranteed.
Related Resources
- All debt and tax calculators
- Settlement vs minimum payment
- Debt consolidation options
- Compare all your debt relief options
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