{
    "name": "Debt Consolidation Calculator",
    "url": "https://calculators.geekmidst.com/calculators/debt-consolidation-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/debt-consolidation-calculator.md",
    "category": "Finance",
    "description": "Compare keeping your current debts with replacing them by one consolidation loan: monthly payment, payoff time, total interest, fees and net saving.",
    "summary": "A consolidation loan only saves money if its rate, term and fees cost less than the debts it replaces. This compares the total you would pay both ways.",
    "also_called": [
        "Consolidation loan calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "debts",
            "label": "Current debts (one per line: balance, APR %, monthly payment)",
            "type": "textarea",
            "default": "Card A: 6,000, 24.99, 180\nCard B: 4,000, 19.99, 120"
        },
        {
            "name": "rate",
            "label": "Consolidation loan APR",
            "type": "number",
            "default": "11",
            "unit": "%"
        },
        {
            "name": "years",
            "label": "Loan term",
            "type": "number",
            "default": "3",
            "unit": "years"
        },
        {
            "name": "fee",
            "label": "Origination fee",
            "type": "number",
            "default": "3",
            "unit": "%",
            "optional": true
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "savings",
            "label": "Total saving from consolidating",
            "format": "currency"
        },
        {
            "key": "new_payment",
            "label": "New monthly payment",
            "format": "currency"
        },
        {
            "key": "current_payment",
            "label": "Current monthly payments",
            "format": "currency"
        },
        {
            "key": "payment_change",
            "label": "Monthly payment reduction (negative = higher)",
            "format": "currency"
        },
        {
            "key": "loan_amount",
            "label": "Loan amount needed",
            "format": "currency"
        },
        {
            "key": "fee_amount",
            "label": "Origination fee",
            "format": "currency"
        },
        {
            "key": "current_cost",
            "label": "Total paid keeping current debts",
            "format": "currency"
        },
        {
            "key": "new_cost",
            "label": "Total paid with the new loan",
            "format": "currency"
        },
        {
            "key": "current_interest",
            "label": "Interest on current debts",
            "format": "currency"
        },
        {
            "key": "new_interest",
            "label": "Interest on the new loan",
            "format": "currency"
        },
        {
            "key": "current_months",
            "label": "Months to clear current debts",
            "format": "integer"
        },
        {
            "key": "new_months",
            "label": "Months on the new loan",
            "format": "integer"
        }
    ],
    "formula": {
        "text": "Current: each debt paid down month by month at its own payment.  New: Loan = Balances ÷ (1 − Fee%); Payment = L × r ÷ (1 − (1 + r)^−n);  Saving = Total paid now − Payment × n",
        "variables": {
            "L": "loan amount",
            "r": "loan APR ÷ 12",
            "n": "loan term in months",
            "Fee%": "origination fee as a share of the loan"
        }
    },
    "worked_example": {
        "inputs": {
            "debts": "10000, 18, 300",
            "rate": "10",
            "years": "3",
            "fee": "0",
            "currency": "USD"
        },
        "steps": [
            "Current: 10,000 at 1.5% a month paying 300 takes −ln(1 − 150 ÷ 300) ÷ ln(1.015) = 46.6, so 47 months and 13,967.21 in total.",
            "New loan: 10,000 × 0.008333 ÷ (1 − 1.008333^−36) = 322.67 a month.",
            "New total = 322.67 × 36 = 11,616.19.",
            "Saving = 13,967.21 − 11,616.19 = 2,351.02, for 22.67 more a month."
        ],
        "result": "Replacing a $10,000 balance at 18% with a 3-year loan at 10% saves about $2,351, though the payment rises by $22.67 a month."
    },
    "interpretation": "Look at the total saving, not just the monthly payment. A longer loan term can cut the payment while costing more overall. Consolidation also only works if the cleared cards are not run up again.",
    "assumptions": [
        "Current debts are paid at the monthly amounts you enter until cleared, with no new borrowing.",
        "The origination fee is deducted from the loan proceeds.",
        "Both sides use monthly interest at APR ÷ 12."
    ],
    "limitations": [
        "Balance-transfer cards with 0% periods and transfer fees need different maths.",
        "Credit score effects and prepayment penalties are not modelled."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "Why can the monthly payment go down but the total cost go up?",
            "answer": "Spreading the debt over more months lowers each payment but adds more months of interest. Compare the “total paid” lines."
        },
        {
            "question": "Is the origination fee worth paying?",
            "answer": "It is included in the comparison: the saving shown is after the fee. If it turns negative, the fee or rate is too high to be worth it."
        }
    ],
    "sources": [
        {
            "title": "Consumer Financial Protection Bureau",
            "url": "https://www.consumerfinance.gov/"
        }
    ],
    "related": [
        {
            "name": "Debt Payoff Calculator",
            "url": "https://calculators.geekmidst.com/calculators/debt-payoff-calculator"
        },
        {
            "name": "Credit Card Calculator",
            "url": "https://calculators.geekmidst.com/calculators/credit-card-calculator"
        },
        {
            "name": "EMI Calculator",
            "url": "https://calculators.geekmidst.com/calculators/emi-calculator"
        },
        {
            "name": "Repayment Calculator",
            "url": "https://calculators.geekmidst.com/calculators/repayment-calculator"
        }
    ],
    "disclaimer": "This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.",
    "publisher": "GM¹X CalcVerse"
}