Enter up to 20 debts — names, remaining balances, monthly or minimum payments, and rates — plus the consolidation loan amount, rate, term, and fee. The calculator compares fee-adjusted APR, monthly payment, payoff time, and total interest so you can see whether combining the debts is actually cheaper.
Formula
Existing debts keep a fixed total equal to the sum of the stated monthly payments. Each month, interest compounds at APR ÷ 12, minimums are paid, and any leftover (including a minimum freed when a debt clears) goes to the highest APR still owing. Combined remaining-debt APR is the IRR of that payment stream against the remaining balances.
The new loan is a standard amortizing payment on the face amount. Monthly rate r is the annual rate ÷ 12; n is years × 12 + extra months:
payment = P × r / (1 − (1 + r)^(−n))
APR from fees = 12 × IRR(payment vs P − fee)
Totals use the unrounded payment × n, then round to cents. Displayed APR is rounded to two decimals. A lower new APR than the current combined APR is treated as cheaper credit; a higher new APR is not recommended.
The article on calculator.net still says a 15% fee on the default example turns the loan red. On the live calculator a 15% fee is 18.33% APR versus 18.92% on the cards — still slightly cheaper. A 20% fee (21.21%) is the point where this example is no longer worth it. Always compare APR, not the fee percent alone.
Default example
| Existing debts | Consolidation loan | |
|---|---|---|
| APR | 18.92% | 13.25% |
| Monthly pay | $630.00 | $543.44 |
| Time to payoff | 59 months (4 years 11 months) | 60 months (5 years) |
| Loan fee | $0 | $1,250.00 |
| Upfront cash flow | $0 | −$250.00 |
| Total payments | $36,963.17 | $32,606.15 |
| Total interest | $12,963.17 | $7,606.15 |
Examples
Three cards, 5% origination
Credit card 1 is $10,000 at 17.99% paying $260. Card 2 is $7,500 at 19.99% paying $190. A high-interest debt is $6,500 at 18.99% paying $180. A $25,000 five-year loan at 10.99% with a 5% fee has a 13.25% APR versus 18.92% on the current debts, a $543.44 payment versus $630, and about $5,357 less interest. You need $250 extra at closing because $23,750 net proceeds is short of the $24,000 still owed.
Same loan with a 20% fee
Raise the fee to 20% ($5,000). The contractual payment is unchanged, but APR jumps to 21.21% — higher than the 18.92% you already pay — so consolidation is not recommended. You would also need $4,000 extra cash to retire the old balances.