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Debt Consolidation Calculator

An Overview of the Debt Consolidation Calculator

If you're considering debt consolidation as a solution for credit card debt or other small debt that's gotten a bit out of control, you should do a little math first to find out if this is the best solution for you.

There are a number of debt consolidation calculators available online. Most mortgage calculators are very user-friendly. We particularly like the one that's, but you can feel free to shop around for mortgage calculator and find the one you like best.

How Does a Debt Consolidation Calculator Work?

All debt consolidation calculators work in essentially the same way - you simply fill in the amounts of any loans you have, any credit card balances, and any additional outstanding debt, and the mortgage calculator will show you what you could expect in the way of a monthly payment if you rolled them all into one debt consolidation loan. You can adjust the terms types of loans, and rates, until you find a debt consolidation plan that works with your budget.


Online debt consolidation calculators may use the following terminology.

  • Loan Payment: This is your current monthly payment.
  • Remaining Payments: How many months you have left to pay on the loan. This is calculated from the monthly payment, the interest rate, and the current loan balance.
  • Loan Interest Rate: This refers to the annual interest. Monthly interest is calculated on the outstanding loan balance, at 1/12 of the annual rate.
  • Credit Card Rate: This is the annual interest that you pay on outstanding balances, and again, monthly interest is charged at 1/12 of the annual rate.
  • Credit Card Balance: This is what's still owed on your credit card.
  • Credit Card Payment: This refers to your monthly payment, as based on your outstanding balance and your rate of interest.
  • Interest Rate: The rate of interest annually on the consolidation loan.
  • Term in Months: How many months it will take to pay the consolidation loan.
  • Up-front Costs: Any fees that the lender will require as a condition of receiving the consolidation loan (loan origination fees, appraisal fees, etc.).
  • Points: The number of points that are paid for the consolidation loan. This usually applies only to home equity loans.
  • Rate Earned on Savings: Interest that you would have earned had your closing costs into gone into savings. The debt consolidation calculator requests your short-term savings rate, which is usually somewhere between two and five percent annually. If you're in doubt, 2% is likely the best figure to use, since most banks and credit unions pay this rate or lower.
  • Income Tax Rate: Your combined state and federal income tax rate is used to calculate the savings on your income tax when you consolidate using a home equity loan.
  • Loan Type: The most common types of consolidation loans are personal and home equity. They differ in terms of fees and rates, and also in terms of the tax deduction that's available on interest. Personal loans have a higher interest rate, and no tax deduction, but the fees are often lower than they are on a home equity loan.
  • Closing Costs: If closing costs are included in the loan, the monthly payment, the balance, and the total interest will increase, but you will have to pay less up front. Including the closing costs in the consolidation loan is a good option if you don't have the funds available to cover them, or if you can get a fairly high rate of return on any savings you may have.

Now you can see what we mean when we say you're going to have to do some math if you're considering a consolidation loan. Fortunately, online debt consolidation calculators can make the process considerably less difficult.

Will doing a Debt Consolidation Home Refinance benefit me?

Enter your new home loan program mortgage information to find out if a debit consolidation home loan is right for you.

Type of Credit Amount Owed Monthly Payment Rate
Enter information on the new loan program.
The default values listed can be adjusted.
Interest Rate %    
Amortization Term (years) Est. Closing Costs
Fed & State Tax Rate % Cash Back Amount
Calculators are provided as loan scenario comparison tools, independent of actual mortgage loan terms. Such information contained herein is made available to you as a self-help tool for illustrative use only. Examples are hypothetical. Although Arbor Financial Group believes the calculations to be accurate, the results are not warranted. We cannot and do not guarantee the applicability or accuracy in regards to your individual circumstances. Contact one of our qualified agents for a professional personalized advice.