Finance & Money
Debt Consolidation Payment Calculator
Combine three debts, calculate weighted APR, financed fee, proposed consolidation payment, total payments, interest and fee cost, payment change, and opening interest saving.
Combined existing balance-
Balance-weighted existing APR-
Entered consolidation fee-
Balance plus financed fee-
New scheduled monthly payment-
New scheduled payment count-
Scheduled total loan payments-
Payments minus original balances-
New minus current monthly payment-
Existing less consolidated opening monthly interest-
Decision view
Current debt mix and consolidation comparison
Current debt mix and consolidation comparisonBalance-weighted APR, financed fee, monthly-payment change, and scheduled cost are compared without merging unlike quantities.
Exact scenario comparisonConsolidation APR (%) changes while all other entered assumptions remain constant.
| Consolidation APR (%) | Combined existing balance | Balance-weighted existing APR | Entered consolidation fee | Balance plus financed fee | New scheduled monthly payment | New scheduled payment count | Scheduled total loan payments | Payments minus original balances | New minus current monthly payment | Existing less consolidated opening monthly interest |
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How to use Debt Consolidation Payment Calculator
- Enter each balance and APR.
- Enter the proposed APR, term, and origination fee.
- Enter the current combined monthly payment.
- Compare debt composition, weighted rates, payment, and scheduled total cost.
Calculator guide
Understanding Debt Consolidation Payment Calculator
Debt consolidation should compare both payment relief and financing cost. Existing APRs must first be weighted by balance, while any financed origination fee increases the new principal before the proposed loan is amortized.
Calculation method
How the calculation works
Evaluate debt consolidation by weighting existing APRs by balance, adding only the entered origination fee, and amortizing the proposed replacement loan independently. Sum balances, weight each APR by its balance, add the entered fee to new principal, calculate the fixed payment, and compare it with current payment and opening interest.
Detailed calculation process
Build the proposed consolidation loan from existing debts
The defaults combine $12,000 at 22%, $8,500 at 17%, and $4,500 at 11%, then finance a 3% fee at 9.5% for four years.
General formula: B = sum B_jr_w = sum(B_j r_j)/BF = BfL = B+Fi = r_c/12P = Li/[1-(1+i)^(-n)]C = nP-BDeltaP = P-P_0DeltaI_1 = Br_w/12-Lr_c/12 The weighted APR describes the current balance mix. The fee increases the new financed amount, the standard payment formula amortizes that amount, and signed comparisons show monthly payment change and opening interest difference.
What each symbol means
Worked substitution with the default inputs
The proposed loan finances $25,750, requires about $646.92 per month for 48 months, and lowers the entered current payment by $203.08.
Debt comparison view
Compare current debt mix with the proposed loan
A balance-weighted rate display, payment dumbbell, and scheduled-cost bar keep current balances, fee, monthly relief, and total cost distinct.
Worked situations
Practical examples
- The current balance-weighted APR is 18.32%.
- A 3% fee raises financed principal to $25,750.
- The new payment is about $646.92, or $203.08 below the entered current payment.
Better inputs
Useful tips
- Compare total cost as well as monthly relief.
- Check whether the fee is financed or paid in cash.
- Avoid rebuilding balances after consolidation.
Before relying on the result
Limitations and common mistakes
- Current debts are summarized rather than individually amortized to payoff.
- Approval, credit impact, variable rates, transfer fees, and prepayment are excluded.
- A lower payment can result from a longer term and does not alone prove savings.
Reference
Key terms
- Weighted APR
- APR average weighted by each existing balance.
- Origination fee
- Entered percentage added to the proposed loan.
- Payment change
- New payment minus entered current payment.
- Opening interest saving
- Difference between first-month interest references.
Important note
Calculated from the entered values and stated financial terms. It is not a product quote, lending decision, tax filing, or investment recommendation.
Frequently asked questions
Why not average the three APRs directly?
Each APR applies to a different balance, so balance weighting is required.
Does the new payment include the fee?
Yes. The default fee is financed into the new principal.
Is the $6,052.20 all interest?
It is scheduled payments above original balances, so it includes the fee and consolidation interest.
Does a lower payment guarantee a better outcome?
No. Term, total cost, fees, and future borrowing behavior also matter.