Compare your current monthly obligations against a single consolidation plan.
Account 1
Account 2
Account 3
Consolidation Offer
Total Debt Balance:$0.00
Current Total Monthly Cost:$0.00
New Consolidated Monthly Payment:$0.00
Monthly Cash Flow Improvement:$0.00
function calculateConsolidation() {
var b1 = parseFloat(document.getElementById('bal1').value) || 0;
var b2 = parseFloat(document.getElementById('bal2').value) || 0;
var b3 = parseFloat(document.getElementById('bal3').value) || 0;
var p1 = parseFloat(document.getElementById('pay1').value) || 0;
var p2 = parseFloat(document.getElementById('pay2').value) || 0;
var p3 = parseFloat(document.getElementById('pay3').value) || 0;
var nApr = parseFloat(document.getElementById('newApr').value) || 0;
var nTerm = parseFloat(document.getElementById('newTerm').value) || 0;
var totalBalance = b1 + b2 + b3;
var currentMonthlyTotal = p1 + p2 + p3;
if (totalBalance <= 0 || nApr <= 0 || nTerm <= 0) {
alert("Please enter valid positive numbers for the balance and consolidation terms.");
return;
}
var monthlyRate = (nApr / 100) / 12;
var newPayment = 0;
if (monthlyRate === 0) {
newPayment = totalBalance / nTerm;
} else {
newPayment = totalBalance * (monthlyRate * Math.pow(1 + monthlyRate, nTerm)) / (Math.pow(1 + monthlyRate, nTerm) – 1);
}
var savings = currentMonthlyTotal – newPayment;
document.getElementById('resTotalBal').innerText = '$' + totalBalance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resCurrPay').innerText = '$' + currentMonthlyTotal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resNewPay').innerText = '$' + newPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resSavings').innerText = '$' + savings.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('results-area').style.display = 'block';
}
Understanding Your Debt Consolidation Options
Debt consolidation is a financial strategy that involves taking out a new loan to pay off multiple smaller debts. This is often done to secure a lower annual percentage cost or to simplify a complex web of monthly installments into one single, manageable payment. By using a debt consolidation calculator, you can visualize exactly how much cash flow you can free up each month.
How This Calculator Works
To use the calculator, gather your current account statements for credit cards, personal loans, or medical bills. You will need to input:
Outstanding Balance: The total amount you currently owe on each specific account.
Annual Percentage (%): The cost of borrowing for that specific account.
Monthly Installment: The amount you are currently paying toward that account each month.
Consolidation Offer: The proposed terms of your new loan, including the lower percentage cost and the number of months you plan to take to repay the total sum.
The Benefits of Consolidating High-Interest Debt
Managing multiple debts can be mentally taxing and financially draining, especially if those accounts carry high annual percentage costs. Consolidating into a single loan offers several advantages:
1. Improved Monthly Cash Flow
By extending the time to repay or lowering the percentage cost, you can significantly reduce the total amount of money leaving your bank account every 30 days. This "Monthly Cash Flow Improvement" shown in our calculator results represents money you can put toward savings, emergencies, or other investments.
2. Simplified Financial Management
Instead of tracking three, five, or ten different due dates and login portals, you only have one single payment to manage. This reduces the likelihood of missing a payment and incurring late fees.
3. Potential for Lower Interest Costs
If your credit score has improved since you first took out your original loans, you may qualify for a consolidation loan with a much lower percentage cost. This means more of your payment goes toward the balance rather than just covering the cost of the debt.
Real-World Example
Imagine you have three credit cards with balances totaling $10,000. Each card has an annual percentage cost of 22%, and you are currently paying a combined $450 per month. If you consolidate that $10,000 into a personal loan at 10% for 36 months, your new payment would be approximately $322.71.
In this scenario, you would save $127.29 every month and have a clear, three-year path to being completely debt-free. Without consolidation, making only minimum payments on high-interest cards could take decades to resolve.
Is Consolidation Right For You?
While consolidation can lower payments, it is most effective when paired with a change in spending habits. It is important to avoid running up new balances on the accounts you just paid off. Use this calculator as a roadmap to see if a consolidation loan aligns with your long-term financial goals.