Debt Consolidation Loan Comparison Calculator

This debt consolidation loan comparison calculator estimates the monthly payment and total interest for one fixed-rate loan based on its amount, APR, and term. Enter the amount you would consolidate and the loan’s quoted terms to see the payment and interest estimate; compare those figures with the costs and payoff schedules of the debts you would replace.

Formula

The calculator uses the standard amortizing-loan payment formula. It calculates a level monthly payment that repays the principal and interest over the selected number of months, assuming the interest rate stays fixed.

• p = loan principal, in dollars ($).
• apr = annual percentage rate, entered as a percentage per year.
• r = monthly interest rate, calculated as apr ÷ 1,200.
• n = number of monthly payments, calculated as years × 12.
• pmt = monthly payment in dollars, rounded to the nearest cent.
• int = estimated total interest in dollars, based on the rounded monthly payment.

In symbols, the payment is pmt = round[p × r ÷ (1 − (1 + r)⁻ⁿ), 2]. Estimated interest is int = pmt × n − p. Because the payment is rounded to cents, the total is an estimate; an actual final payment may be adjusted to clear a small remaining balance.

Worked Example

Using the calculator’s defaults—$20,000 principal, 8% APR, and a five-year term:

1. Convert the annual rate to a monthly rate: 8 ÷ 1,200 = 0.0066667.
2. Convert the term to payments: 5 × 12 = 60 months.
3. Substitute into the payment formula: $20,000 × 0.0066667 ÷ [1 − (1 + 0.0066667)⁻⁶⁰].
4. Round the resulting monthly payment to cents: $405.53 per month.
5. Calculate interest using the rounded payment: $405.53 × 60 − $20,000 = $4,331.80 total interest.

Assumptions

• The APR remains fixed for the full loan term.
• Payments are made monthly, at the end of each monthly period.
• Interest compounds monthly at APR ÷ 12.
• The estimate excludes origination or other fees, taxes, insurance, and any charges on the debts being consolidated. These costs are not calculator inputs.

How to Compare Consolidation Offers

A consolidation loan replaces multiple balances with one new loan. A useful comparison requires more than looking at the advertised payment: check the amount financed, APR, repayment term, fees, and total repayment. Enter each offer’s actual quoted figures separately. Get the applicable rate, fee schedule, and payoff amount directly from the lender or creditor; this calculator does not supply or predict them.

For a fair comparison, use the same amount of debt in each calculation when possible. If a lender deducts an upfront fee from the proceeds or adds it to the balance, determine how that changes the principal you must borrow. The calculator treats the full amount entered as principal and does not model fees. Also confirm whether the quoted APR and payment are fixed for the full term, since a variable rate or a different payment schedule would change the outcome.

• Monthly payment: Shows the scheduled payment under the calculator’s assumptions. A smaller payment can result from a longer term, not necessarily a lower overall cost.
• Total interest: Estimates interest over the full term, excluding fees. Compare it alongside the payment, not instead of it.
• Term: A longer repayment period generally means more payment periods. Even if each payment is lower, total interest may be higher.
• Fees and payoff amounts: Check what it costs to originate the new loan and what it takes to close each existing balance. Neither is included here.

What the Estimate Leaves Out

The output is a mathematical estimate for one fixed-rate, fully amortizing loan. It does not compare a new loan directly with your current debts because it has no inputs for their balances, APRs, minimum payments, promotional periods, or remaining payoff dates. To evaluate the difference, gather current statements and compare each debt’s expected remaining payments and interest with the proposed loan’s payments and fees. If balances or rates change, a single static estimate cannot represent the full schedule.

Some consolidation products may have variable rates, optional add-on products, or terms that do not use equal monthly payments. This calculator does not model those features. It also does not establish whether you qualify, whether a creditor will accept a payoff amount, or whether a lender will issue the terms in a quote. Use the lender’s written disclosures for the figures and conditions that apply.

Common Comparison Mistakes

• Choosing by payment alone: Extending repayment can lower the monthly bill while increasing the number of payments and total interest.
• Comparing APRs without fees: The calculator’s interest estimate excludes fees, so compare the full cost using the lender’s disclosures as well.
• Entering the wrong principal: Use the amount actually financed, not necessarily the sum of statement balances; payoff quotes can differ from balances shown on statements.
• Assuming old accounts disappear: A new loan does not itself close or repay existing debts. Verify that payments reach the intended creditors and check their account balances.
• Rounding too early: The calculator rounds the monthly payment to cents before estimating total interest. Small differences from a lender’s final schedule can result from payment dates, rounding, and fees.

Frequently Asked Questions

How do I compare debt consolidation loans?
Compare the amount financed, APR, term, scheduled payment, total interest, and fees for each offer. Use matching debt amounts when possible and verify all quoted figures in the lender’s disclosures.

Does a lower monthly payment mean I will pay less?
No. A lower payment can reflect a longer term, which may increase total interest. Compare the full repayment period and costs, not only the monthly amount.

Does this calculator include fees?
No. It estimates payments and interest from principal, APR, and term only. Obtain the lender’s fee details and account for them separately when comparing offers.

Why might my lender’s payment differ from this result?
The lender may use different rounding, payment dates, fees, a variable rate, or a different repayment schedule. The calculator assumes a fixed APR, monthly compounding, and equal end-of-month payments.

Can I use this to compare a consolidation loan with credit cards?
It can estimate a proposed loan’s payment and interest, but it cannot model existing card balances, changing rates, new purchases, or minimum-payment rules. Use current account information to make a separate comparison.

This result is an estimate, and the lender’s disclosure gives the exact figures.

Related

• M&T Installment Loan Payment Calculator
• MDG Installment Loan Payment Calculator
• Online Installment Loan Calculator and Payment Guide

in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | round(p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2