Compare one balance or a list of debts with a new consolidation loan: payments, payoff time, interest and an upfront fee entered as an amount or percent.
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Check your inputs—Complete valid inputs to calculate a current result.
currency units
0 – 1,000,000,000,000 currency units
%
0 – 1000 %
currency units
0 – 1,000,000,000,000 currency units
%
0 – 1000 %
months
1 – 1200 months
currency units
0 – 1,000,000,000,000 currency units
Estimated financing-cost savings
3,243.1963 currency units
New monthly payment484.0078 currency units
Current payoff term42.0000 months
New interest plus fee2,724.2811 currency units
Current interest5,967.4773 currency units
Compares one balance with constant rates, no new borrowing and a fee paid in cash. A lower payment can extend repayment. It does not model changing rates, credit effects or lender approval. Choose “A list of separate debts” to add several accounts.
How this was calculated
Current plan: each month interest = balance × APR ÷ 12, then the fixed payment is appliedPut in your numbers: 15,000.00 at 20% with 500.00 a monthAnswer: 42 months, 5,967.48 interest
New payment M = P · r ÷ (1 − (1 + r)^−n), r = APR ÷ 12Put in your numbers: P = 15,000.00, r = 10% ÷ 12, n = 36Answer: M = 484.01 a month
New interest = M × n − PPut in your numbers: 484.01 × 36 − 15,000.00Answer: 2,424.28
Savings = current interest − new interest − feePut in your numbers: 5,967.48 − 2,424.28 − 300.00Answer: 3,243.20 currency units
Formula and method
Savings = current projected interest − new projected interest − upfront fee. The new payment uses the level-payment amortization formula.
Worked example
Refinancing a 1,200 zero-interest balance into another 12-month zero-interest loan with a 50 fee costs 50 more, even though both monthly payments are 100.
Several debts
Choose “A list of separate debts” and enter one line per debt: balance, annual rate and monthly payment. Each debt is projected on its own payment (monthly interest = balance × rate ÷ 12), and their interest is added up. The consolidation loan borrows the total balance.
The result also shows the balance-weighted current rate, Σ(balance × rate) ÷ total balance, and your current total monthly payment, so you can see whether a lower new payment comes from a lower rate or only from a longer term.
An origination fee can be entered as an amount or as a percentage of the new loan (for example 3% of 15,000 = 450). It is treated as paid separately, not added to the loan.
Frequently asked questions
Does a lower payment always save money?
No. A longer term can reduce the monthly payment while increasing interest. Compare total financing cost and payoff time together.