Debt Consolidation Calculator
Should you consolidate your debt? This calculator is designed to help determine if debt consolidation is right for you. Fill in your loan amounts, credit card balances and other outstanding debt. You can then see what your monthly payment would be with a consolidated loan. Try adjusting your terms, loan types or rate until you find a consolidation plan that fits your needs - and most importantly your budget!
Loan amount owed
Loan amount owed is the total remaining balance on a loan. If you are uncertain of your exact balance, enter an estimate that is as close as possible.
The payment amount is your current monthly payment.
Loan months Left
The number of months you have left to make payments on a loan.
Credit card balance
The outstanding balance on your credit card. You do not need to include finance charges, they will be calculated based on your interest rate.
Credit card rate
Annual interest rate you pay on outstanding credit card balances. This calculator assumes simple interest is charged every month at 1/12th of your annual rate.
Credit card payment
Credit card payments are based on your outstanding balance and annual interest rate. For this loan comparison, the monthly payment is the amount required to pay off your credit card in same number of months as your consolidation loan. Your actual credit card payment may be lower, but will often require many more payments.
Annual interest rate for your new consolidation loan.
Term in months
Number of months for your new consolidation loan.
Up front costs
Any fees you are required to pay up front to receive this loan. This could include appraisal fees, loan origination fees, etc.
Number of points paid to for this loan. Points are usually only paid for home equity loans.
Rate earned on savings
This is the rate you would have received if you had put your closing costs into savings. Enter your short term savings rate. For most people this is currently 2% to 5% annually. Savings accounts at a bank or credit union pay as little as 2% or less.
Income tax rate
This is your combined federal and state income tax rates. It is used to determine income tax savings when you use a home equity loan to consolidate your debt.
The two most common loans types, home equity and personal, differ in fees, rates and tax deductibility of interest. Home equity loans often have higher fees, but usually have lower rates and a tax deduction for interest paid. Personal loans do not have a tax deduction for interest paid, and have a higher interest rate but often have lower fees. These are important considerations when choosing a loan.
Include closing costs in loan
If you include your closing costs in your loan, your loan balance, monthly payment and total interest paid will increase. You will, however, be required to pay less money up front. Including your closing costs in your loan may be a good option if you do not have funds available, or you can achieve a relatively high rate of return on your savings.
The information provided by this calculator is for illustrative purposes only. Accuracy of the result is not guaranteed, and we are not responsible for any errors, omissions, or misrepresentations. The results obtained from this calculator are hypothetical and may not be applicable to your individual situation. This calculator cannot pre-qualify you for any loan program. In order to qualify for any loan program, an application must be submitted for approval. Additional information, such as credit scores, asset and debt information, property value and other information, will be required, and may not be taken into consideration by this calculator. Interest rates and pricing are only examples, are subject to change at any time and without notice, and may not be available at the time of loan application. Additional fees, such as association dues, may not be included in calculations. The information provided does not constitute investment advice. You should not make investment decisions based on results obtained from this calculator. Investment strategies should be reviewed periodically as financial circumstances change. The results of financial calculators may provide a rough approximation of future financial performance, but may not reflect the actual growth of your own investments. We are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by this calculator. You should consult a financial professional prior to relying on the results of this calculator.