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Consolidation vs. keeping separate loans

Debt Consolidation Calculator: Cash Flow & Cost Comparison

This calculator compares total interest when you pay each debt's minimum until it is gone against one fixed-rate consolidation loan. It uses balance-weighted average APR and standard amortization on the sum of entered balances for the consolidation payment and interest total. You can enter up to 20 debts with APR and minimum payment, plus consolidation rate and term in months. It does not model origination or balance-transfer fees, and when one debt is paid off its minimum is not applied to other balances. Illustrative estimates only; not a lender offer or credit advice.

By Jeff Beem

Updated

01

Current debts

$
%
$
$
%
$
$
%
$
02

Consolidation loan

%
Consolidation analysis
$+60

Monthly cash flow (modeled)

$6,298

Total interest (consolidated)

Insight

Consolidation saves about $2,547 in interest versus the modeled current plan and about $60/month in cash flow in this scenario.

Weighted APR16.66%
Interest (min. path)$8,845
Current monthly$465
Consolidated monthly$404.96
Total debt balance$18,000
03

How to use this calculator

Enter each debt's balance, APR, and minimum payment in section 01, then your consolidation APR and term in months in section 02. The dark panel shows Monthly cash flow (modeled), Total interest (consolidated), Weighted APR, and Interest (min. path). Each debt is modeled on its own minimum until paid off; freed minimums do not roll to other balances. Origination and balance-transfer fees are not in the form.

Reading your consolidation comparison

Section 01 lists each balance with APR and minimum; section 02 sets the consolidation quote. The dark panel leads with monthly cash flow change and total consolidation interest.

Example: three debts, 12.5% consolidation, 60 months

By default: $5,000 at 19.99% ($125 min), $3,000 at 24.99% ($90 min), $10,000 at 12.5% ($250 min). Total $18,000; weighted APR 16.66%. Consolidation at 12.5% over 60 months β†’ about $405/month versus $465 combined minimums; consolidation interest about $6,298 versus about $8,845 on the minimum path (~$2,547 less). Monthly cash flow about +$60. Green Insight when both payment and total interest improve.

Weighted APR tile

The Weighted APR chip in the results grid is balance-weighted: Ξ£(balance Γ— APR) Γ· total balance from section 01. A consolidation quote in section 02 should sit below that number if you are actually lowering blended cost on the same principal.

Insight panel (green / yellow / rate warning)

The Insight box under the headline turns green when consolidation lowers both Monthly cash flow (modeled) and total interest versus Interest (min. path). Yellow copy appears when the consolidation payment exceeds combined minimums. Consolidation APR above 20% triggers a separate high-rate warning.

Debt consolidation calculator: cash flow and interest comparison

Compares paying each debt minimum until zero against one amortizing consolidation loan. Illustrative estimates only, not a lender offer or credit advice.

What this calculator does

Enter up to 20 debts (balance, APR, minimum payment) and one consolidation loan (APR, term in months). You get weighted APR, combined minimums versus the consolidation payment, total interest on the consolidation loan, and modeled interest if each debt stays on its own minimum until paid off (minimums do not roll across debts). Monthly cash flow change is combined minimums minus the consolidation payment. It does not pull credit, guarantee approval, model fees, or forecast credit scores.

How the math works

Weighted APR on the balances you would pay off:
WeightedΒ APR=βˆ‘i=1nBiΓ—riβˆ‘i=1nBi\text{Weighted APR} = \frac{\sum_{i=1}^{n} B_i \times r_i}{\sum_{i=1}^{n} B_i}
Consolidation payment uses standard amortization on the sum of those balances:
M=Prc(1+rc)n(1+rc)nβˆ’1M = P \frac{r_c(1 + r_c)^n}{(1 + r_c)^n - 1}
where P is total principal, rc is monthly consolidation rate (APR Γ· 12), and n is term in months. Total consolidation interest = (M Γ— n) βˆ’ P.
For each debt whose minimum exceeds its monthly interest charge, the tool estimates months to payoff on that balance alone and sums interest paid. Debts are modeled in parallel; when one line hits zero, its minimum is not applied elsewhere. That sum is Interest (min. path) in the panel.

Limits of the comparison

No origination, balance-transfer, or prepayment-penalty fields. Card APRs you type are held flat; the tool does not forecast future rate hikes on variable cards. Consolidation can help utilization after balances post, but only if you stop adding new charges on cleared lines. If you can afford extra monthly dollars without a new loan, compare the Debt Payoff Calculator. For lender qualifying ratios, see the DTI Calculator.

FAQ

When does debt consolidation make financial sense on this page?

When your quoted consolidation APR is below the Weighted APR on the debts you are rolling together and the new payment still fits your budget. The green Insight line appears only when this model shows both lower monthly cash flow and lower total interest than the minimum-payment path. Subtract origination or balance-transfer fees on your own; this form compares interest only.

Why does my β€œInterest (min. path)” total look high?

Each debt in section 01 is paid with its own minimum until zero. Freed minimums are not rolled to other balances. Debts whose minimum does not cover monthly interest are skipped in that total. Compare that figure to Total interest (consolidated), not to a single fixed-term loan in isolation.

Can a lower consolidation payment still cost more overall?

Yes. A longer term in section 02 cuts the monthly payment but can raise lifetime interest. Read Total interest (consolidated) beside Interest (min. path) before you celebrate a smaller payment.

What fees should I factor in outside this calculator?

Personal loans often charge origination fees (commonly 1–5% of the amount borrowed). Balance-transfer cards often charge 3–5% of the amount moved. If fees exceed the interest gap the Insight line shows, consolidation loses on net even when the rate looks better.

How is this different from debt settlement?

Debt consolidation pays creditors in full through a new loan or transfer. Debt settlement negotiates for less than the balance owed and typically damages credit for years. This page models consolidation math only, not settlement offers.

How is this different from the Debt Payoff Calculator?

This tool compares minimum payments on several debts against one consolidation loan. The Debt Payoff Calculator models snowball or avalanche when you pay extra each month without taking a new loan.

Sources & citations

References used for the calculation method and definitions. Links open in a new tab when available.

[1]
CFPB – Consolidating credit card debt

CFPB overview of balance transfers, consolidation loans, fees, and risks before combining debts.

[2]
CFPB – What is a credit card interest rate? What does APR mean?

CFPB definition of APR used when comparing card rates to a consolidation loan quote.

Financial Estimation Note

General Projections: Results are mathematical estimates based on the rates and formulas currently loaded for this tool, including year-specific tax data where noted. They are intended for high-level planning only.

No Advice Provided: This site does not provide financial, tax, or legal advice. Using this tool does not create a client-advisor relationship with CalcRegistry.

Confirm Numbers: Financial laws change frequently. Please verify all results with a qualified professional (CPA, Financial Planner, or Lawyer) before making significant financial decisions.

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