A lower monthly payment is not the same as a lower total cost. This is the most important thing to understand about debt consolidation. Replacing several debts with one loan at a lower rate can reduce the monthly payment significantly, but if the consolidation term is longer than the remaining term on the original debts, the total interest paid may be higher. This calculator shows both figures side by side so the borrower can see the full picture before committing. If you are struggling with debt and not sure where to start, StepChange and National Debtline both offer free, impartial advice.
For a more detailed view of your debt position, including which debts are costing the most and whether a debt management plan might be more appropriate than a loan, the specialist tools linked below each focus on a specific question. All figures on this page are illustrative and the tool does not constitute financial advice.
At a Glance
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The monthly saving and the total cost saving are two different figures. Check both.
A consolidation loan almost always reduces the monthly payment because it spreads the borrowing over a longer term. But longer terms mean more months of interest. The calculator shows the monthly saving and the total interest comparison side by side so you can see whether the consolidation genuinely costs less overall or just feels cheaper month to month.
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Not every debt should be consolidated. High-rate debts with long remaining terms benefit most.
A credit card at 22% with a large balance benefits enormously from consolidation at 7%. A 0% balance transfer card with 10 months remaining does not, because consolidating it replaces a free rate with a paid one. The debt prioritisation tool helps identify which debts to include and which to leave out.
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A debt management plan may be more appropriate than a loan if affordability is the core issue.
Consolidation works best when the borrower can comfortably afford the new payment and the total cost is lower. If the core problem is affordability rather than rate, a debt management plan negotiated through a free provider like StepChange may be more appropriate. The DMP comparator models both options.
Interactive tool
Debt consolidation calculator
Enter your existing debts and a consolidation loan to see whether you genuinely save money overall. Includes break-even term finder, per-debt analysis, and accelerated payoff modelling.
All figures are illustrative. Nothing you enter is stored or transmitted.
| Debt | Balance | APR % | Monthly | Remaining interest | Months left |
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Consolidation loan
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Break-even term finder
The maximum term at which consolidation still saves money overall
Per-debt analysis: which debts to consolidate
Shows whether each individual debt saves or costs money when consolidated at the loan terms above
Keep paying the old amount
If you keep paying your current combined monthly total towards the consolidation loan instead of the lower required payment
Remaining interest on existing debts assumes payments continue at the amounts entered using standard amortisation. The consolidation loan uses the same formula. The break-even term finder scans all terms from 1 to 15 years at the entered APR. Per-debt contribution is calculated by comparing each debt’s remaining interest against its proportional share of the consolidation interest. Accelerated payoff assumes the full current combined payment is applied to the consolidation loan with no early repayment charges. This tool does not constitute financial advice. All figures are illustrative only.
How the calculator works
Enter each of your existing debts with their balance, APR, and monthly payment. Then enter the consolidation loan terms: the rate, the term, and any arrangement fee. The calculator compares your current combined monthly payment against the consolidation payment, and your current total cost (remaining interest on all debts) against the consolidation total cost. The result shows four key figures: the monthly saving, the total interest on existing debts, the total interest on the consolidation loan, and the net saving or additional cost.
The net figure is the one that matters most. A positive net saving means consolidation genuinely costs less in total. A negative figure means consolidation costs more overall despite the lower monthly payment, which happens when the consolidation term is significantly longer than the average remaining term on the original debts. The guide to whether consolidation is right for you covers the decision framework in detail, and the guide to consolidation and your credit score explains the credit file implications.
All debt consolidation tools
Each of these tools focuses on a different part of the consolidation decision.
Full debt picture
Total debt picture tool
See all your debts in one place: combined balance, monthly cost, debt-to-income ratio, and which debts are generating the most interest. Open tool
Which debts to include
Debt prioritisation tool
Work out which debts benefit most from consolidation and which are better left on their current terms based on rate and remaining term. Open tool
Saving and true cost
Saving and true cost calculator
A combined tool showing your saving on monthly payments alongside the true total interest cost over the full term of a consolidation loan. Open tool
Loan vs DMP
Consolidation vs DMP comparator
Compare a consolidation loan against a debt management plan across cost, timeline, and credit score impact to see which route fits better. Open tool
Debt-free date
Debt-free date calculator
See when each of your debts would be cleared at current repayments, and how much sooner with overpayments or a consolidation loan. Open tool
Credit recovery
Credit rebuild timeline
Map when different lender tiers become accessible after adverse credit events, and what actions help your credit score recover fastest. Open tool
Not sure what to look at next?
All of our debt consolidation guides and tools in one placeFrequently asked questions
Can consolidation cost more than keeping my existing debts?
Yes, and this is the most important thing the calculator reveals. If the consolidation term is significantly longer than the average remaining term on your existing debts, the total interest paid can be higher even at a lower rate. For example, replacing three credit cards with a 10-year secured loan at 7% may halve the monthly payment but double the total interest, because the interest runs for ten years instead of two to three. The calculator shows this by comparing the total interest on both sides, not just the monthly payment.
Consolidation genuinely saves money when the rate reduction is large enough and the term is not extended too far beyond the remaining life of the original debts. The pros and cons guide covers the scenarios where consolidation works well and where it does not.
Should I consolidate all my debts or just some of them?
Not every debt benefits from consolidation. Debts with very low rates (such as a 0% balance transfer card with months remaining) or debts with very short remaining terms (a car finance agreement with four payments left) may be better left on their current terms. Consolidating them replaces a cheap or nearly-finished commitment with a longer, rate-bearing one. The debt prioritisation tool helps identify which debts to include by ranking them on rate and remaining interest.
The general principle is: consolidate debts where the rate saving is meaningful and the remaining balance is large enough to justify the new arrangement. Leave debts where the rate is already low, the balance is small, or the remaining term is very short.
What is the difference between secured and unsecured consolidation?
A secured consolidation loan is a second charge mortgage secured against your property. It typically offers lower rates and higher borrowing limits than an unsecured loan, but your home is at risk if you do not keep up repayments. An unsecured consolidation loan has no property security, which means higher rates and lower limits but no risk to your home. The secured vs unsecured consolidation guide covers the decision in detail.
For homeowners with significant equity and debts above £10,000 to £15,000, secured consolidation typically offers the most competitive rate. For smaller amounts or borrowers without property, unsecured is the standard route. The calculator works for both types: the rate and term you enter determine which scenario is being modelled.
Squaring Up
The monthly saving headline is where most consolidation marketing starts and stops. This calculator goes further by showing the total interest on both sides, which is the figure that determines whether consolidation genuinely saves money or simply spreads the cost over a longer period. The term comparison is the key: a consolidation loan that saves £200 per month but costs £8,000 more in total interest is not a saving. It is a cashflow trade that costs more over time.
For borrowers who want to explore the full picture, six specialist tools are linked from this page, covering the total debt position, which debts to consolidate, the DMP alternative, the debt-free date, the saving and true cost calculation, and credit recovery after adverse events.
Continue your research
Guides, calculators, and comparators covering every aspect of debt consolidation Explore guides and toolsThis tool is for illustrative purposes only and does not constitute financial advice. All figures are estimates based on the inputs provided. The rate you are offered on a consolidation loan will depend on your individual circumstances, credit profile, and the lender’s assessment. If you are struggling with debt repayments, free advice is available from StepChange and National Debtline. Your home may be at risk if you consolidate unsecured debts into a secured loan and do not keep up repayments. Actual outcomes will depend on your individual circumstances.
