{
  "slug": "debt-consolidation-loan-calculator",
  "title": "Debt Consolidation Loan Calculator",
  "heading": "Debt Consolidation Loan Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/debt-consolidation-loan-calculator",
  "summary": "Compare one fixed loan against the cards you're carrying now.",
  "description": "Consolidation is a rate-and-structure trade, not a magic reduction. You swap several revolving balances at variable rates for one instalment loan at a fixed rate and a fixed end date. That usually lowers total interest and always removes the temptation of a minimum payment, but origination fees and a longer term can quietly make the total worse even when the monthly payment falls. This calculator adds up your current balances, compares the interest you would pay attacking them directly with the total cost of the consolidation loan including origination fee, and shows monthly payment, total repaid, and true break-even.",
  "formula": "Loan payment = P × r ÷ (1 − (1 + r)^−n) on (balances + origination fee); compared with interest on the existing balances at your current payment.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=debt-consolidation-loan-calculator",
  "inputs": [
    {
      "id": "cardBalance",
      "label": "Total balances to consolidate",
      "kind": "number",
      "hint": null,
      "default": 18000,
      "unit": "$",
      "min": 0,
      "max": 500000
    },
    {
      "id": "cardApr",
      "label": "Blended current APR",
      "kind": "number",
      "hint": null,
      "default": 22.5,
      "unit": "%",
      "min": 0,
      "max": 40
    },
    {
      "id": "currentPayment",
      "label": "What you pay now",
      "kind": "number",
      "hint": null,
      "default": 550,
      "unit": "$/mo",
      "min": 0,
      "max": 20000
    },
    {
      "id": "loanApr",
      "label": "Consolidation loan APR",
      "kind": "number",
      "hint": null,
      "default": 12.9,
      "unit": "%",
      "min": 0,
      "max": 40
    },
    {
      "id": "termMonths",
      "label": "Loan term",
      "kind": "number",
      "hint": null,
      "default": 48,
      "unit": "months",
      "min": 6,
      "max": 120
    },
    {
      "id": "origination",
      "label": "Origination fee",
      "kind": "number",
      "hint": null,
      "default": 4,
      "unit": "%",
      "min": 0,
      "max": 12
    }
  ],
  "outputs": [
    {
      "id": "savings",
      "label": "Savings vs staying on cards",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "payment",
      "label": "New monthly payment",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "loanCost",
      "label": "Total cost of the loan (fee + interest)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "currentInterest",
      "label": "Interest if you keep paying cards",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "currentMonths",
      "label": "Card payoff at current payment",
      "format": "number",
      "hint": null,
      "primary": false
    },
    {
      "id": "totalRepaid",
      "label": "Total repaid on the loan",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Total balances to consolidate: 18000 $",
      "Blended current APR: 22.5 %",
      "What you pay now: 550 $/mo",
      "Consolidation loan APR: 12.9 %",
      "Loan term: 48 months",
      "Origination fee: 4 %"
    ],
    "outputs": [
      "Savings vs staying on cards: $4,538",
      "New monthly payment: $501",
      "Total cost of the loan (fee + interest): $6,062",
      "Interest if you keep paying cards: $10,600",
      "Card payoff at current payment: 52",
      "Total repaid on the loan: $24,062"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter total balances to consolidate ($).",
      "Enter blended current apr (%).",
      "Enter what you pay now ($/mo).",
      "Enter consolidation loan apr (%).",
      "Enter loan term (months).",
      "Enter origination fee (%).",
      "Read your savings vs staying on cards on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "cardBalance": 11000,
        "cardApr": 13.5,
        "currentPayment": 325,
        "loanApr": 7.74,
        "termMonths": 30,
        "origination": 2.4
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "cardBalance": 18000,
        "cardApr": 22.5,
        "currentPayment": 550,
        "loanApr": 12.9,
        "termMonths": 48,
        "origination": 4
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "cardBalance": 29000,
        "cardApr": 36,
        "currentPayment": 875,
        "loanApr": 20.64,
        "termMonths": 78,
        "origination": 6.4
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why can a lower rate still cost more?",
      "a": "Because of term and fees. Stretching an 18-month payoff into a 60-month loan can add interest even at half the rate."
    },
    {
      "q": "Does consolidation close my cards?",
      "a": "Not automatically. Keeping them open with zero balance usually helps utilization, but only if you do not re-run them."
    },
    {
      "q": "Will applying hurt my score?",
      "a": "A hard inquiry and a new account typically cause a small temporary dip; on-time instalment payments and lower revolving utilization often help later. Not guaranteed."
    },
    {
      "q": "Is this the same as debt settlement?",
      "a": "No. Consolidation repays the full balance at a new rate. Settlement negotiates a reduced payoff and generally carries far larger credit and tax consequences."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/credit-card-payoff-time-calculator",
    "https://www.revenuelab.fyi/toolbox/debt-avalanche-vs-snowball-calculator"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Debt Consolidation Loan Calculator (https://www.revenuelab.fyi/toolbox/debt-consolidation-loan-calculator)"
}