Debt Consolidation Calculator
Enter your current debts to estimate your savings with a debt consolidation loan.
Debt consolidation calculator
The debt consolidation calculator above can help you decide if a consolidation loan is right for you. By combining your current debts under a new loan, ideally with a lower interest rate, you can save money and even get out of debt faster.
» MORE: See our picks for the best debt consolidation loans
Updated June 3, 2026
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How to use this calculator
Step 1: Enter the balance, annual percentage rate and monthly payment you currently make toward each of your unsecured debts. This may include credit cards, personal loans and payday loans.
Don't include secured debts like car loans or low-rate student loans here. There are better ways to manage those debts. (Learn more about auto refinancing and student loan refinance options.)
Step 2: Choose your credit score range, then hit “Calculate Savings.”
Step 3: Drag the sliders to enter the desired APR and repayment term you hope to receive on a debt consolidation loan. We've pre-selected an APR based on the average APR for borrowers in your credit bracket. Fine-tune it to match a real loan offer or explore different scenarios.
See a comparison between your current debts and the new debt consolidation loan. The table shows:
- APR: Your average weighted interest rate for all the debts you put in the calculator compared to the new loan's APR.
- Monthly payment: The total monthly payment you're making toward all your debts compared to your new monthly loan payment.
- Total interest: The amount of interest you'll pay on your current debts compared to the total interest on the new loan.
- Time to pay off: The amount of time until you're debt-free (if you keep making the same payments) compared to if you consolidate with a new loan.
Debt consolidation makes the most sense when you can save money on interest, while still being able to afford the monthly payment.
See how the calculator works with $20,000 in credit card debt
Meet Alex. Alex has $20,000 in credit card debt spread across four different credit cards. These cards carry an average annual percentage rate of 23%.
Alex has a good credit score, and he wants to know if he can save money and time by consolidating his debts. Here’s how Alex uses the calculator.
Step 1: Enters debts
Alex enters four different credit card balances into the calculator — each $5,000. Under each balance, Alex also enters the card’s interest rate (either 22% or 24% APR) and the monthly payment he makes toward that card ($125 for each).
Step 2: Chooses credit score range
Next, Alex selects his credit score range: Good (690 - 719).
Step 3: Compares results
For his desired loan, Alex chooses an 18% APR and a five-year repayment term.
He then reviews a side-by-side comparison between his current credit card debt and the new consolidation loan.
This comparison shows Alex’s monthly payment will be only $8 more, but he’ll save a whopping $8,036 in interest. He’ll also get out of debt almost two years earlier, since he’s considering a loan with a five-year term.
In this case, a debt consolidation loan makes sense for Alex because he would save money on interest and get out of debt faster.
Ways to consolidate debt
These loans, usually from an online lender, credit union or bank, provide a large amount of money to pay off multiple debts at once. This leaves you with only one monthly debt payment. Terms on debt consolidation loans typically range from one to seven years.
This option transfers your existing credit card debt to a new credit card that charges no interest for a promotional period, typically 15 to 21 months. This makes the debt easier to pay off, since you aren’t spending money on interest.
This option combines several debts, usually credit cards, into a single monthly payment at a lower interest rate. A credit counseling agency can enroll you in a debt management plan and charges small startup and monthly fees. It usually takes three to five years to repay the debt.
If you own your home, you may be able to get a loan based on the equity in your home to pay off your other debts. But you risk losing your home if you don’t keep up with the payments.
If you have an employer-sponsored retirement account, like a 401(k), you could take out some of that money to pay off your debts. The downsides are less funds for your retirement, and if you can’t repay the loan, you’ll owe penalties and taxes.
Debt consolidation options for bad credit
Debt consolidation loans for bad credit are available from many online lenders. These loans have terms up to seven years, and amounts can be as high as $50,000. Some lenders may have a minimum credit score requirement between 550 and 600, while others may accept borrowers with no minimum credit score.
Credit unions are another smart place to turn, since they tend to look more favorably on bad-credit borrowers. Check with your local credit union first, though you can also look for national credit unions that offer personal loans.
If you can’t qualify for a debt consolidation loan with a low enough interest rate, debt payoff options like the debt snowball and debt avalanche methods are good alternatives. These DIY strategies can be extremely effective and don’t require you to apply for credit.
Do debt consolidation loans hurt my credit score?
You may see a temporary dip in your credit score after applying for a debt consolidation loan. That’s because lenders require a hard credit pull as part of the application, which knocks a few points off your score.
However, if you make on-time payments on the new loan and avoid running up new debt, your credit scores should rebound and even grow over time. This can make it easier to qualify for more affordable financing in the future.
» MORE: Does debt consolidation hurt your credit?
Weigh the pros and cons of debt consolidation
If you’re not sure whether debt consolidation is right for you, consider the benefits and risks to consolidating your debts.
Pros of debt consolidation
- You pay less in interest: If you consolidate with a product that has a lower interest rate than your credit cards or other debts, you’ll save money on interest. This can make getting out of debt easier.
- You may get out of debt faster: Since you’re paying less interest, you could potentially apply those savings to your debt repayment and get out of debt even faster.
- You have only one payment: Instead of juggling multiple debt repayments, consolidating your debts means you only have to worry about making one payment. This can help you avoid late fees or additional interest.
- You have a clear finish line: Paying off debt is challenging, but with consolidation, you have a clear plan and a finish line to work toward. As long as you make your payments on time, you’ll know when you’ll be out of debt for good.
Cons of debt consolidation
- You may not qualify for a low enough rate: Depending on your credit score, you may not be able to qualify for a lower interest rate than your current debts. In this case, consolidation may not be the best option.
- You still have debt you need to manage: Debt consolidation doesn’t mean you’re debt-free. You still have to manage payments for your new loan, balance-transfer card or other consolidation product.
- Consolidation won’t fix core spending issues: If you struggle with chronic overspending, consolidation may make things worse. This is especially true if you’re consolidating credit card debt, since consolidation “frees up” your credit cards by moving the existing balance elsewhere.
Which lender is right for me?
NerdWallet has reviewed more than 30 lenders to help you choose one that’s right for you. Below is a list of lenders that offer standout debt consolidation loans.
 |  |  |
|---|---|---|
Est. APRFrom 6.49% to 24.89% | Est. APRFrom 6.99% to 35.49% | Est. APRFrom 5.99% to 35.99% |
Loan amountFrom $5,000 to $100,000 | Loan amountFrom $5,000 to $100,000 | Loan amountFrom $2,000 to $50,000 |
Min. credit score660 | Min. credit scoreNaN | Min. credit score600 |
