Monthly payment and interest comparison: current debts vs one consolidation loan.

30,000 of debt at 18% current weighted rate consolidated into a 7-year loan at 9%: current minimum payments might total 900/month at 18%; consolidated is 482/month with total interest of 10,489 over the term vs 30,000+ at original rates. The trade-off: longer term means lower monthly but potentially similar total cost if not disciplined.

How to use it

Enter current total debt, current weighted interest rate (blend your cards, loans), proposed consolidation loan rate, and consolidation loan term in years.

What the result means

Primary is consolidated monthly payment. Secondary shows total consolidated interest, monthly savings vs current payments, and total interest over the term. A consolidation is worthwhile when total interest over the new term is less than total interest at current rates — the tool shows both sides.

The discipline question

Consolidation creates monthly breathing room, but if freed-up cash is spent rather than used to accelerate debt reduction, total cost can end up higher than leaving the debts as-is. The tool shows the math; the discipline is yours.

Quick example

With total debt of 30,000 and current weighted rate of 18% (plus consolidation rate of 9% and consolidation term of 7 years), the result is 482.67. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Total Debt, Current Weighted Rate, Consolidation Rate, and Consolidation Term (Years). Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Monthly payment uses the standard loan amortisation formula for the consolidation term and rate. Total interest is monthly payment × months − principal. Current-rate comparison uses minimum-payment-style annual interest (simplification). The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Reading the output honestly

The payoff date assumes every payment lands on time and at the amount you entered. In reality, months with unexpected expenses happen. Treat the figure as the best-case timeline and add a buffer for life if you want a realistic target.

What this doesn't capture

Real payoff journeys include missed payments, fee changes, balance transfers, and promotional rates that reset. The calculation assumes a steady plan; reality is rarely that clean. Use the figure as the best-case plan against which actual progress gets measured.