Debt Consolidation Calculator
See how much you could save by combining multiple debts into one lower-rate loan. Enter your current debts, compare against a consolidation loan, and get a clear picture of your savings.
Your Current Debts
Consolidation Loan Terms
Consolidation Comparison
✅ Consolidation Saves You Money
Interest Cost Comparison
Debt Consolidation Options Compared
| Method | Typical APR | Best For | Risk Level |
|---|---|---|---|
| Personal Loan | 6%–36% | Credit card debt, fixed payment schedule | 🟢 Low |
| Balance Transfer Card | 0% intro (12–21 mo) | Smaller balances you can pay off in promo period | 🟡 Medium |
| HELOC | 7%–10% | Homeowners with equity, larger debts | 🔴 Higher (home as collateral) |
| Cash-Out Refinance | 6%–8% | Large debts + mortgage refinance opportunity | 🔴 Higher (home as collateral) |
| Debt Management Plan | Negotiated rates | Those struggling with payments | 🟢 Low (no new credit) |
Personal Loan Rates by Credit Score (April 2026)
Related Calculators
How to Use This Debt Consolidation Calculator
Our free debt consolidation calculator helps you determine whether combining your debts into a single loan makes financial sense. Enter each of your current debts with their balances, interest rates, and minimum payments. Then set the terms for a potential consolidation loan to see a side-by-side comparison.
What Is Debt Consolidation?
Debt consolidation combines multiple debts — usually high-interest credit cards, personal loans, or medical bills — into a single loan with one monthly payment. The goal is to secure a lower interest rate, reduce your monthly payment, or pay off debt faster. It doesn't eliminate what you owe; it restructures it.
When Does Consolidation Make Sense?
- Your consolidated APR is lower than the weighted average of your current debts
- You want one predictable monthly payment instead of juggling multiple bills
- You have a plan to avoid accumulating new debt after consolidating
- Your credit score qualifies you for a competitive rate (typically 680+)
- The total cost (including origination fees) is less than paying debts separately
Risks to Consider
- Longer payoff = more interest: Stretching payments over 5–7 years may lower your monthly bill but increase total interest paid
- Origination fees: Many lenders charge 1%–8% upfront, which gets added to your loan balance
- Collateral risk: HELOCs and cash-out refinances put your home at risk if you can't pay
- Temptation to re-spend: Freed-up credit card limits can lead to new debt if spending habits don't change
- Credit impact: A hard inquiry and new account may temporarily lower your credit score
Average American Debt (April 2026)
The average American household carries approximately $7,951 in credit card debt, with an average APR of 20.72%. Total U.S. household debt exceeds $17.9 trillion. Debt consolidation is one of the most-searched financial tools because millions of Americans are looking for relief from high-interest debt.
Frequently Asked Questions
Does debt consolidation hurt your credit score?
Initially, your credit score may drop slightly due to a hard inquiry and a new account lowering your average account age. However, consolidation often improves your score over time by lowering your credit utilization ratio and creating a consistent on-time payment history.
What credit score do you need for a debt consolidation loan?
Most lenders require a minimum score of 580–620 for a debt consolidation personal loan. However, to get the best rates (under 10%), you'll typically need a score of 720 or higher. Some lenders also consider your debt-to-income ratio and employment history.
Is debt consolidation the same as debt settlement?
No. Debt consolidation pays off your existing debts in full with a new loan — you still owe the full amount, just at better terms. Debt settlement negotiates with creditors to accept less than you owe, which can severely damage your credit score and may have tax implications.
Should I use a HELOC or personal loan for debt consolidation?
A HELOC typically offers lower rates (7–10%) but puts your home at risk as collateral. A personal loan has higher rates (6–36%) but is unsecured — you won't lose your home if you can't pay. Choose a HELOC only if you're confident in your ability to repay and the savings are substantial.
How long does debt consolidation take?
Getting approved for a consolidation loan typically takes 1–7 business days. Once funded, your old debts are paid off within 1–2 weeks. The full payoff of your new consolidated loan depends on the term you choose — typically 2 to 7 years for a personal loan.
Can I consolidate student loans and credit card debt together?
You can consolidate both into a personal loan, but federal student loans would lose access to income-driven repayment plans, forgiveness programs, and other federal protections. It's generally better to keep federal student loans separate and consolidate only private loans and credit card debt.
Ready to Consolidate?
Join the Loan.AI private beta and get AI-powered rate comparison from 20+ lenders — no hard credit pull.
Get Early Access→