Three revolving balance threads against the consolidated amortization spineLive current inputs
Finance & Money
Debt Consolidation Growth Projection Calculator
Project how several debts evolve beside a consolidation loan, including fees, repayment timing, interest cost, and balance crossover points.
Consolidated starting balance—
Required loan payment—
Card balances after loan term—
Card-path interest paid—
Loan interest and fee cost—
Projected financing-cost saving—
Card-path payoff month—
Projection result—
Debt-thread convergence
Three revolving balance threads against the consolidated amortization spine
Individual card threads decline under avalanche allocation while the consolidation spine follows fixed amortization. Interest bands make slow balance decay and fee-loaded starting debt visible.
Live decision table
Balance checkpoints: keep cards versus consolidate
Track total debt, cumulative interest, and cash-flow requirement at key months.
| Month | Card balance | Loan balance | Card interest paid | Loan interest paid | Lower balance path |
|---|
Cash-flow schedule
Annual and monthly cash-flow schedule
How to project
Compare the same debts and payment capacity
- Enter current statement balances and APRs.
- Use the total payment you can sustain.
- Include the fee in the new loan balance.
- Compare at the proposed loan term and through payoff.
Projection method
Rate reduction and amortization structure both matter
A lower APR can still disappoint when fees are large or the new term is much longer. The fixed loan payment forces principal reduction; revolving cards may decline slowly if the payment barely exceeds interest.
The card path uses a highest-rate-first allocation after monthly interest.
Calculation method
Simulate revolving debts and compare them with a fee-loaded amortizing loan
The consolidation loan finances all starting balances plus the entered fee and amortizes over its term. The alternative path applies the same monthly cash first to minimum interest and then to the highest-APR active balance, preserving individual debt dynamics.
Detailed calculation process and general formulas
B_L0 = ΣB_i × (1 + f)P_L = B_L0 r_L / [1 - (1+r_L)^(-n)]I_im = B_i,m-1 × APR_i / 12B_i,m = max(B_i,m-1 + I_im - P_im, 0)Savings = Cost_cards - Cost_loanSymbols, meanings, and units
- B_i
- balance of revolving debt icurrency
- APR_i
- annual percentage rate of debt idecimal/year
- B_L0
- fee-loaded consolidation balancecurrency
- f
- origination fee ratedecimal
- r_L
- monthly consolidation ratedecimal/month
- n
- loan termmonths
- P_L
- required fixed loan paymentcurrency/month
- Savings
- difference in financing costcurrency
The live worked example substitutes current inputs in formula order and reconciles the headline result with the visual and decision table.
Offer audit
Check the consolidation quote beyond APR
- Confirm origination fee treatment.
- Check prepayment penalties.
- Verify fixed versus variable rate.
- Exclude debts the lender will not pay directly.
Behavior risk
Consolidation fails when cards refill
The projection assumes no new purchases. If paid cards are reused, total debt can grow even when the loan amortizes correctly.
A lower required payment should not automatically become new discretionary spending.
Debt path anatomy
What creates the projected saving
The visual separates starting fee, interest slope, payment structure, and payoff timing.
Fee-loaded loan
—All balances plus origination cost.
Required payment
—Fixed amortizing loan payment.
Financing-cost spread
—Projected interest and fee saving.
Card-path payoff
—Month avalanche payments retire the cards.
Decision takeaway: Consolidate only when the fee-loaded loan path lowers cost without extending debt or encouraging card reuse.
Practical applications
Decisions this calculator is designed to support
Three high-rate cards
A borrower compares avalanche payments with a three-year fixed personal loan including an origination fee.
What the result clarifies: The thread chart shows whether the fee is recovered through faster principal decline.
Uneven-rate balances
One small card has the highest APR while a larger card carries a lower rate.
What the result clarifies: The revolving path preserves avalanche ordering instead of using one blended balance.
Worked example
Current-input substitution and reconciliation
Important note
This projection is educational and excludes taxes, late fees, variable-rate changes, promotional expirations not entered, credit-score effects, and new borrowing. Confirm lender disclosures before refinancing.
Debt Consolidation Growth Projection Calculator FAQ
Why add the fee to the loan balance?
Many loans deduct or finance origination fees; financing it increases starting debt and interest.
How are card payments allocated?
After monthly interest, available cash targets the highest-APR active balance first.
What if the entered payment is below monthly interest?
The card path can grow; the visual retains that negative-amortization behavior.
Does lower payment mean lower cost?
No. Cost depends on APR, fee, term, and total interest, not payment alone.