Debt Consolidation Calculator · Practical guide
How Much Can I Save Consolidating Credit Card Debt?
Savings depend on your balances, card rates, and the loan you qualify for — here is a realistic example.
At a glance
The Short Answer
On $20,000 of credit card debt, consolidating from typical card APRs into a 9% five-year personal loan saves roughly $185 a month and $7,343 in total interest. Your numbers will differ, so enter your actual cards above — the savings table breaks the result down line by line.
Interactive tool
Debt Consolidation Calculator
Enter your own values, then compare the result with the examples below.
Your Current Debts
Current Debt Summary
Consolidated Loan Summary
Savings
Savings Table
| Metric | Current | Consolidated | Savings |
|---|
The Example, Line by Line
| Card | Balance | APR | Monthly Payment |
|---|---|---|---|
| Card 1 | $9,000 | 24.99% | $270 |
| Card 2 | $6,500 | 21.99% | $195 |
| Card 3 | $4,500 | 19.99% | $135 |
Current Path vs. Consolidated Loan
Paying $600 a month across the three cards — applying freed-up payments to the remaining balances as cards are cleared — takes about 4.8 years and costs $12,253 in interest. A $20,000 consolidation loan at 9% for 5 years has a fixed payment of $415.17 and total interest of $4,910.
| Metric | Keep Cards | Consolidate at 9% | Savings |
|---|---|---|---|
| Monthly payment | $600.00 | $415.17 | $184.83 |
| Payoff time | 4.8 years | 5 years | — |
| Total interest | $12,253 | $4,910 | $7,343 |
What Drives Your Savings
- The rate gap: the wider the spread between your card APRs and the loan rate, the more you save.
- The term: a shorter term raises the payment but cuts total interest further.
- Fees: an origination fee of 5% on $20,000 is $1,000 — subtract it from the headline savings.
Frequently Asked Questions
How are the savings calculated?
The tool simulates your current debts month by month at their existing rates and payments, then compares the total interest against a fixed-rate consolidation loan at the rate and term you enter.
What if my consolidation rate is higher than 9%?
Savings shrink as the rate rises. At 12% the same $20,000 over five years costs about $6,693 in interest — still roughly $5,560 less than the card path in this example.
Do I save money if the payment is lower but the term is longer?
Not necessarily. A lower payment from a stretched term can increase total interest. Always compare the total-interest figures, not just the monthly number.
Should I close the cards after consolidating?
Keeping them open but unused usually helps your credit utilization, but only if you trust yourself not to run balances back up. Closing them is safer if temptation is the risk.