How to Use This Calculator

Enter your total debt, the repayment term in months you want to compare, your average credit card APR, and the consolidation loan APR you're considering. The calculator computes the fixed monthly payment and total interest under each rate over the same term, side by side.

Unlike the Credit Card Payoff Calculator (which solves for how long a fixed payment takes to clear a balance), this tool solves for the payment and total interest over a term you choose — useful when you're comparing a specific consolidation loan offer against continuing to carry the debt at card rates.

What the Inputs Mean

  • Total Debt: The combined balance you're looking to consolidate, across one or more cards or accounts.
  • Term: The repayment period, in months, you want to compare both scenarios over.
  • Credit Card APR: Your current average APR across the debt you're comparing, found on your statements.
  • Consolidation Loan APR: The fixed rate on a consolidation loan offer you're evaluating.

Assumptions & Formula

  • Both scenarios are compared over the identical term you enter, using the standard fixed-rate amortization formula — this isolates the effect of the interest rate difference alone.
  • It assumes no additional charges are added to the card balance during the comparison period, and that the consolidation loan has no origination fee factored into its APR unless you include that in the rate you enter.
  • This tool shows the mathematical effect of rate alone; it never promises a specific savings outcome, since actual consolidation loan approval, rate, and terms depend on your credit profile and the lender.

Formula: Monthly payment at each APR = D × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where D is total debt, r is the monthly rate for that APR, and n is the term in months. Total interest = (monthly payment × n) − D for each scenario; savings is the difference between the two.

Worked Example

With $20,000 in total debt over a 48-month term, a 24.99% card APR produces a monthly payment of about $588 and roughly $8,224 in total interest. A 13.99% consolidation loan APR over the same 48 months produces a monthly payment of about $542 and roughly $6,016 in total interest — an estimated savings of about $2,208 over the term, driven entirely by the lower, fixed rate.

Frequently Asked Questions

How is this different from the Credit Card Payoff Calculator?

The Payoff Calculator solves for how long a fixed monthly payment takes to clear your balance. This tool instead fixes the term and solves for the payment and total interest at two different APRs, which is more useful when you're comparing a specific consolidation loan offer against your current card rate.

Will I definitely qualify for the consolidation APR I enter?

No — enter the APR from an offer you've actually received, or a rate you want to compare hypothetically. Actual approval and rate depend on your credit profile and the lender's underwriting.

Does consolidating always save money?

Only if the new fixed rate is meaningfully lower than your blended card APR and you avoid accumulating new card debt afterward — consolidation doesn't help if the underlying balances come right back.

Should I use the longest term available to lower my payment?

A longer term lowers your monthly payment but increases total interest paid at any given rate. Use the calculator to compare a couple of term lengths against both your budget and the total cost.

Sources

  • Methodology note — This tool compares the APRs you enter directly — it does not pull live card or loan rates from a data feed. Use your own statement APR and any real loan offer's APR for the most accurate comparison.