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Debt Consolidation Calculator

See whether one new loan beats paying your cards and loans as now, in total cost and monthly outgo.

By Nitin Raturi · Last reviewed

Your debts and the new loan

How to use the Debt Consolidation Calculator

See whether one new loan beats paying your current debts as you do now.

  1. List each debt with its balance, rate and current monthly payment.
  2. Enter the new loan’s rate, tenure and processing fee.
  3. Compare the total paid and the monthly payment for both ways.

Good to know

  • A lower EMI over a longer tenure can cost more in total.
  • Close the old cards and loans once the new loan pays them off.

Your debts

Each loan or card you would pay off with the new loan, with what you pay on it each month now.

How to fill it in

  • One debt per line: name, balance, annual rate %, monthly payment.
  • Use digits only for the numbers, for example: Credit card, 80000, 42, 4000.
  • Up to 10 debts.

Example

The three sample debts take 38 months and ₹5,77,977 in all at today’s payments.

Keep in mind: Each payment must be more than that debt’s monthly interest, or it never clears.

Name, balance, annual rate %, monthly payment, one per line.

New loan rate

The annual interest rate on the consolidation loan you have been offered.

How to fill it in

  • Enter 0% to 40% a year.

Example

At 16% over 3 years with no fee, the EMI is ₹15,469 and the saving ₹21,089.

New loan tenure

How many months to repay the consolidation loan.

How to fill it in

  • Enter 6 to 120 months.

Example

Stretching the sample to 84 months lowers the EMI to ₹8,004 but costs ₹6,81,175 in all.

Processing fee

The lender’s upfront charge, as a percent of the loan.

How to fill it in

  • Enter 0% to 10%. Include GST on the fee if you know it.

Example

A 2% fee on the sample’s ₹4,40,000 is ₹8,800.

Consolidation loan

Saves ₹2,580

Today you pay ₹17,000 a month and ₹5,77,977 in all over 3 years 2 months. The new loan is ₹11,804 a month for 4 years, ₹5,75,397 in all including a ₹8,800 fee.

Monthly change
₹5,196 less a month
Interest now
₹1,37,977
Interest on new loan
₹1,26,597
Credit card
clears in 2 years 11 months, ₹59,991 interest
Personal loan
clears in 3 years 2 months, ₹71,399 interest
Bike loan
clears in 1 year 11 months, ₹6,586 interest

Current debts are paid at today’s payments until each clears; rates stay fixed. The new loan’s EMI uses annual rate ÷ 12. Prepayment charges on the old debts, GST and late fees are not included.

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1As noweach at its paymentEvery debt runs until it clears.
  2. Step 2One loanbalances addedRepaid with one EMI.
  3. Step 3Comparetotal and monthlyFee included.

Debt consolidation means taking one new loan to pay off several debts at once. It helps when the new rate is lower than what you pay now, especially on credit cards.

The calculator runs each current debt month by month at its own payment. It then prices the new loan with the standard EMI formula and adds the processing fee.

Worked example: three debts into one loan

Card, personal loan and bike loan into 13% for 48 months
EMI
P × r ÷ (1 − (1 + r)⁻ⁿ), r = 13% ÷ 12
  1. Balances80,000 + 3,00,000 + 60,000₹4,40,000
  2. Paid as now38 months₹5,77,977
  3. New EMI48 months at 13%₹11,804
  4. Processing fee2%₹8,800
  5. New loan, all in₹5,75,397

Here the new loan saves only ₹2,580 in total, while the monthly payment drops from ₹17,000 to ₹11,804. The fee and the longer tenure use up most of the gain from the lower card rate.

Read the result

  • As now₹5,77,977
  • 13%, 48 months, 2% fee₹5,75,397
  • 16%, 36 months, no fee₹5,56,887
  • 13%, 84 months, 2% fee₹6,81,175
Total paid for the same ₹4,40,000 of debt

A shorter loan can save more even at a higher rate: 16% over 36 months with no fee saves ₹21,089. Stretched to 84 months, the 13% loan costs ₹1,03,198 more than paying as now.

Monthly relief or total saving

  • Lower EMI₹8,00484 months, but ₹6,81,175 in all.
  • Lower total₹15,46936 months, ₹5,56,887 in all.

Assumptions and limits

  • Other chargesForeclosure charges on old loans and GST are not included.
  • Fixed ratesAll rates stay the same.
  • Same paymentsCurrent debts keep today’s payments.
  • New spendingAssumes cleared cards are not used again.

Consolidation changes the rate and the term together. Check each part on its own before deciding.

To compare paying debts in a set order instead, use the debt payoff calculator. For an existing home or personal loan, the loan balance transfer calculator weighs a new lender’s rate against switching costs.

The APR calculator folds a new loan’s fees into one yearly rate, so offers compare fairly.

Common mistakes

  • Mistake: Judging only by the lower EMI.

    Instead: Compare the total paid as well.

  • Mistake: Forgetting foreclosure charges on old loans.

    Instead: Add them to the fee or subtract them from the saving.

  • Mistake: Using the freed-up cards again.

    Instead: Close or limit them, or the debt comes back.

Checking the method

A separate script re-works every golden value with closed-form balances for the current debts and a bisection search for the EMI, with no EMI formula.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

Does consolidating always save money?

No. In the worked example a 13% loan over 48 months with a 2% fee saves only ₹2,580; over 84 months it costs ₹1,03,198 more than paying as now.

When does consolidation save money?

When the rate is lower and the tenure not much longer. The same debts at 16% over 36 months with no fee save ₹21,089.

Why does a longer tenure cost more?

Interest runs for longer. Stretching the example to 84 months cuts the EMI to ₹8,004 but costs ₹6,81,175 in all.

Is the processing fee included?

Yes, as a percent of the loan paid up front: 2% of ₹4,40,000 is ₹8,800.

What if my payment on a debt is too small?

If a payment does not cover that debt’s monthly interest, it never clears; the calculator asks you to raise it.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 4 Nov 2026; next review due by . Found an error? Tell us.

Changelog

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