Free Debt Consolidation Savings Calculator
Calculate how much you could save by consolidating multiple debts into a single lower-rate loan.
USD
%
%
years
New Monthly Payment
$531
Total Interest (Consolidation)$6,871
Total Interest (Current Path)$16,428
Interest Savings$9,558
New Monthly Payment vs Consolidation Loan Term
Debt Consolidation
Consolidation replaces multiple high-rate debts with a single lower-rate loan.
When It Makes Sense
Formula
Both scenarios use the standard loan payment formula:
M = P x r x (1+r)^n / [(1+r)^n - 1]
The difference in total interest between old and new rates is your savings.
Example Calculation
$25,000 at 22% average vs consolidation at 10% for 5 years.
- 01New payment = $25,000 at 10% for 60 months = $531
- 02New total interest = $531 x 60 - $25,000 = $6,874
- 03Old total interest at 22% = $707 x 60 - $25,000 = $17,418
- 04Interest savings = $17,418 - $6,874 = $10,544
Frequently Asked Questions
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