Debt Consolidation Calculator
Our debt consolidation calculator compares the total cost of your existing debts against a single consolidation loan — showing monthly payment savings, total interest savings, and the true financial benefit. It also flags when consolidation may cost more.
Debt Consolidation Calculator
Add up to 3 debts and compare the total cost against consolidating into a single personal loan.
When Debt Consolidation Makes Sense
Consolidation makes financial sense when the new loan rate is materially lower than your existing debt rates AND the new term does not significantly extend your total repayment period. Moving £8,000 of credit card debt at 22% APR into a personal loan at 8% APR over 3 years saves approximately £1,800 in total interest. However, consolidating into a longer term may increase total interest paid even at the lower rate. A 0% balance transfer card is often a better first option for credit card debt — use our Balance Transfer Calculator to compare. For a full affordability check, use our Loan Affordability Calculator.
Beware Secured Consolidation Loans
Secured consolidation loans against your home carry lower rates but put your property at risk if you default. Converting unsecured credit card debt into secured debt is a serious step requiring careful consideration.
Frequently Asked Questions
Applying for a new consolidation loan involves a hard credit search. However, reducing utilisation and making consistent payments typically improves credit scores over 6–12 months.
Personal loans, credit cards, overdrafts, and store cards can all be consolidated. Student loans, car finance (PCP), and mortgages generally cannot.
If you carry balances at 20%+ APR and qualify for a personal loan at under 10%, consolidation typically saves significant interest. Always check settlement figures and early repayment charges first.
If your payment on any existing debt does not exceed monthly interest, the balance grows. Our calculator flags this and shows the minimum payment needed.
Free debt advice from StepChange or National Debtline can help create a structured repayment plan. A debt management plan may be more appropriate than a commercial loan for total debts above £25,000.
Enter up to three existing debts with their balances, APRs, and minimum monthly payments. Then enter the terms of the consolidation loan being considered. The calculator shows total interest you would pay continuing as-is versus total interest on the consolidation loan. Consolidation is only worthwhile if the total interest saving exceeds any arrangement fees and early repayment charges on existing debts. Check that the consolidation loan APR is actually lower than your existing debt rates — this is not always the case, particularly for secured debts or 0% credit card balances. After consolidation, avoid using the cleared credit cards to avoid creating new debt on top of the consolidation loan.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.