Category: Tools

Enter your current debts and a consolidation loan offer to see which costs less and which gets you debt-free sooner. Use the APR and fee from a real prequalified offer for the best estimate.

How to read your results

• Months to pay off now: how long your current payment takes to clear the balance at your current average APR. If it says “Never,” your payment doesn’t cover the monthly interest.
• Interest if you keep paying as now: total interest under your current plan.
• New monthly payment: the fixed payment on the consolidation loan, sized so the loan covers your full balance after the fee.
• Interest + fee with the loan: total borrowing cost of consolidating.
• Estimated difference: positive means the loan is cheaper.

Worked example

How to find your average APR

Look at each card statement for the purchase APR and balance. A simple weighted average is: (Balance₁ × APR₁ + Balance₂ × APR₂ + …) ÷ total balance. For example, $8,000 at 27% and $7,000 at 20% averages (2,160 + 1,400) ÷ 15,000 ≈ 23.7%.

When consolidation may not help

• The loan APR is close to your current rates.
• You stretch the term so far that total interest rises, even with a lower payment.
• You’d keep using the paid-off cards and build new balances.
• A 0% intro APR balance transfer could clear the debt cheaper within the promo period.

Calculator assumptions

• Your current debts are treated as one balance at the average APR with a constant payment and no new charges.
• The loan has a fixed rate, equal monthly payments, and the fee is deducted from proceeds.
• Results are estimates for comparison, not offers.

Next steps

• Read our full guide to debt consolidation loans.
• Get real rates with a soft check: how to prequalify.
• Test other loan scenarios with the personal loan calculator.

Frequently asked questions

How do I know if debt consolidation will save money?

Compare total interest and fees under your current plan with the total cost of the loan. If the loan’s total is lower and the payment fits your budget, consolidation saves money.

What if my current payment barely covers interest?

If your payment is at or below the monthly interest, the balance never goes down. A consolidation loan with a fixed term forces payoff, but make sure the new payment is affordable.

Why does the calculator borrow more than my balance?

When an origination fee is deducted from the proceeds, you must borrow slightly more to receive enough to pay off your full balance.

Use this calculator to see what a personal loan will really cost before you apply. Enter the amount, rate, term and any origination fee. Results update as you type.

How to use the results

• Monthly payment: make sure it fits your budget with room to spare. A common guideline is to keep total monthly debt payments well below 36% of gross income.
• Total interest: the price of borrowing. Try a shorter term to see how much it drops.
• Total cost (interest + fee): the number to compare across lenders that offer the same term.
• Cash you receive: if a fee is deducted, you’ll receive less than you borrow. If you need a specific amount in hand, increase the loan amount until this number covers it.

How APR changes the cost of a $10,000 loan

Two lessons stand out. First, your rate matters enormously: the same loan costs five times as much interest at 35.99% as at 8%. Second, a longer term lowers your payment but can nearly double the interest you pay.

The formula behind the calculator

Fixed-rate installment loans use the standard amortization formula:

Payment = P × r ÷ (1 − (1 + r)⁻ⁿ)

• P = loan amount
• r = monthly interest rate (annual rate ÷ 12, as a decimal)
• n = number of monthly payments

Origination fees: the hidden cost

An origination fee is typically deducted from your loan. With a 5% fee on $10,000, you receive $9,500 but repay $10,000 plus interest. That makes the effective cost higher than the interest rate suggests, which is exactly what APR captures. See APR vs interest rate for a side-by-side example.

Assumptions and limits

• Fixed rate and equal monthly payments for the full term
• Payments made on time; no late fees
• Fee deducted from proceeds (some lenders add it to the balance instead)
• Results are estimates; your lender’s Truth in Lending disclosure is the official figure

Next steps

• Paying off cards? Try the debt consolidation calculator.
• See what rate your credit might get: compare personal loans.
• Check rates safely: how to prequalify without hurting your credit.

Frequently asked questions

How is a personal loan payment calculated?

Fixed-rate loans use the amortization formula: payment = P × r ÷ (1 − (1 + r)⁻ⁿ), where P is the loan amount, r is the monthly rate (APR ÷ 12) and n is the number of months.

Should I enter the APR or the interest rate?

Enter the interest rate and the origination fee separately for the most accurate total cost. If you only know the APR, enter it with a 0% fee.

Is a lower monthly payment always better?

No. A longer term lowers the payment but increases total interest. Choose the shortest term with a payment you can comfortably afford.