FinToolSuite

Personal Loan vs Credit Card Calculator

Updated April 17, 2026 · Debt · Educational use only ·

Should you consolidate credit card to personal loan.

Compare personal loan vs credit card cost. See savings from consolidating credit card balance to personal loan. Free and educational.

What this tool does

Enter balance, credit card APR, personal loan APR, and term. The tool shows savings from consolidating.


Enter Values

Formula Used
Balance
Rate

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Calculations, display, or translation — let us know.

Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Personal loans typically half the rate of credit cards. 8k credit card at 22% vs personal loan at 8%: monthly payment 230 (loan) vs 210 (card minimum). But loan clears in 3 years vs 25+ years on minimum. 6k+ interest saved.

Quick example

With balance to consolidate of 8,000 and credit card apr of 22% (plus personal loan apr of 8% and loan term of 3), the result is Personal Loan. 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 Balance to Consolidate, Credit Card APR, Personal Loan APR, and Loan Term. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.

What's happening under the hood

Calculate total interest for personal loan over term. Approximate credit card interest at minimum payment for comparison. 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.

Why payoff plans work

Debt feels overwhelming when it's an abstract total. Break it into a payoff date and a monthly figure and the problem becomes finite — you can see the finish line. That visibility is what this tool provides, and for many people it's the difference between dithering and acting.

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.

Example Scenario

Loan vs CC produces savings based on the inputs provided.

Inputs

Balance to Consolidate:8,000 £
Credit Card APR:22
Personal Loan APR:8
Loan Term:3 years
Expected ResultPersonal Loan

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

Calculate total interest for personal loan over term. Approximate credit card interest at minimum payment for comparison.

Frequently Asked Questions

Always consolidate?
Almost always when loan rate dramatically lower. Discipline required to not run up cards again.
What rate to expect?
2026: personal loans 6-15% depending on credit. Better credit = better rates. Compare offers.
Risk?
Adds new debt commitment. Failure to repay loan can be more serious than card debt. Personal loans generally unsecured but lender can pursue.
Vs balance transfer card?
0% balance transfer often best for amounts you can clear in promotional period. Personal loan better for longer payoff.

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