Debt Consolidation Calculator

Compare multiple debts vs one consolidation loan and see your total interest savings.

Your Debts

NameBalance (₹)Rate (%)Min PMT (₹)

Total Debt

₹3,50,000

Payoff Time

3y 6m

Monthly Total

₹13,000

Payoff Order (Highest Rate → Lowest):

1. Credit CardMonth 14
2. Car LoanMonth 42

Avalanche saves the most interest overall.

Debt Consolidation Calculator Formula & How It Works

Savings = Total Interest (Current Debts) − Total Interest (Consolidation Loan)
  • Current monthly: sum of all minimum payments
  • Consolidation: single loan at lower rate for all balances
  • Net savings = interest saved minus consolidation fees
  • Monthly relief = current total payment − new single payment

Debt consolidation replaces multiple high-rate debts (especially credit cards at 20%+) with a single lower-rate personal loan. Total interest savings depend on the rate difference, remaining balances, and loan terms. However, a longer consolidation term can increase total interest even at a lower rate — always compare total interest, not just monthly payment.

Debt Consolidation Calculator FAQs

When does debt consolidation make sense?

Consolidation makes sense when: the consolidation rate is lower than your current average rate, you commit to not accumulating new debt, and the term doesn't extend so long that total interest exceeds current path.

What credit score do I need for debt consolidation?

To get a rate meaningfully lower than credit cards (which average 20%+), you typically need a 680+ credit score to qualify for personal loans at 10–15%. Below 640, secured options or nonprofit credit counselling may be better.

Is a balance transfer or personal loan better for debt consolidation?

A 0% balance transfer card beats a personal loan for paying off debt within the intro period (usually 15–21 months). For balances you can't clear in that time, a personal loan with a fixed rate is more predictable.

Related Calculators

Debt Payoff Calculator

Find your debt-free date using the avalanche or snowball method and see how much interest you save.

Personal Loan Calculator

Calculate monthly payments and compare the total cost of personal loan offers.

Credit Card Calculator

See how long minimum payments keep you in debt and how much interest you really pay.

Loan Calculator

Calculate monthly payments, total interest, and total repayment for any type of loan.