Debt Consolidation Calculator guide
Debt Consolidation Calculator: Will a Loan Save Money?
Use our debt consolidation calculator to compare your current debts with a single consolidation loan and see the monthly payment and interest saved.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
Debt consolidation means taking one loan to pay off several debts. It can lower your payments and interest, but not always. Our Debt Consolidation Calculator shows whether it would help you.
How to use the calculator (Debt Consolidation Calculator)
- List each debt as its name, balance, APR and monthly payment.
- Enter the consolidation loan's APR, term and any fees.
How it works
The calculator works out how long your debts would take to clear at your current payments, and the interest. It then compares that with the consolidation loan's payments and cost.
A worked example
With the calculator's default settings, £7,000 of card and overdraft debt costing £235 a month:
- Consolidation loan at 9.9% over 4 years: £175.79 a month
- Interest with the loan: £1,438
- Interest if you carry on as now: £4,229
- Potential saving: £2,791
When consolidation can backfire
- The new rate isn't lower than your current rates.
- A longer term lowers payments but costs more overall.
- You run up new debt on the cleared cards.
- A secured loan puts your home at risk.
Frequently asked questions
Will it affect my credit score?
Applying causes a hard search, but reducing the number of debts and paying on time can help over time.
Where can I get free advice?
StepChange, National Debtline and Citizens Advice all offer free, confidential help.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.