You are carrying credit card debt across one, two, or more cards, and you are wondering whether moving the balances to a personal loan would save money. The answer depends on the card APRs, the loan APR, the monthly payments, and the term. A lower rate on a loan does not automatically mean a lower total cost if the loan term is longer than the time it would take to clear the cards at the current payments.
This calculator models both routes: the cards as they are (simulated month by month at the current payments) and a consolidation loan at an illustrative APR over a chosen term. It shows the total interest, total cost, and clearance time for each, and produces a net saving or net cost figure. If the cards have payments close to the minimum, the tool flags the minimum payment trap. If the loan term is longer than the card clearance time, the tool flags that consolidation may cost more despite the lower rate. All figures are illustrative. This tool is for informational purposes and does not constitute financial advice.
At a Glance
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Enter up to 4 card balances. The tool simulates each card month by month and aggregates the total interest, total cost, and longest clearance time across all cards.
Each card is simulated independently at its own APR and monthly payment. The combined figures show the true cost of carrying multiple card balances: the total interest across all cards, the total amount paid, and how long until the last card is cleared. For many borrowers, seeing the combined interest figure is the first time the total cost of their card debt becomes visible.
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The consolidation loan uses the combined card balance as the principal. The comparison is total cost on cards vs total cost on loan, not rate vs rate.
A loan at 8% APR replacing cards at 22% APR sounds like a clear saving. But if the cards would be cleared in 30 months at current payments and the loan term is 5 years, the longer term can erode or eliminate the rate advantage. The calculator shows both scenarios and produces the net figure. Rate comparison alone is not enough.
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The tool detects the minimum payment trap on individual cards and flags it. This is the scenario where consolidation is almost always the better route.
If any card has payments close to the minimum (around 2.5% of the balance), most of each payment covers interest and the balance barely decreases. A £3,000 balance at 22% APR on minimum payments takes over 25 years to clear. Consolidating into a 3-year personal loan at 8% clears the same debt in a fixed term at a fraction of the interest. The calculator flags these cards individually.
Credit Card to Personal Loan Savings Calculator
Enter your card balances, APRs, and monthly payments. Then set the loan rate and term. The calculator compares both routes. All figures are illustrative.
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Keep paying the cards
Combined balance
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Combined monthly
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Total interest
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Total paid
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Time to clear all
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Consolidate to loan
Loan amount
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Monthly payment
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Total interest
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Total paid
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Cleared in
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Net result
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About this calculator
Useful for borrowers with one to four card balances who want to see whether moving them to a personal loan saves money, and if so, how much.
Each card is modelled individually at its own APR and payment. The loan uses the combined balance. The comparison shows total interest, total cost, and clearance time for both routes.
Cards with near-minimum payments are flagged. If the loan term exceeds the card clearance time, the tool warns that consolidation may cost more despite the lower rate.
This tool serves both silos. The debt consolidation calculator covers broader consolidation scenarios including secured lending.
How to use this calculator
The balance and APR are on the card statement. The monthly payment is what you actually pay (not the minimum, unless that is what you pay). Each card shows a clearance summary: how long to clear and total interest at the current payment.
Use a rate from a soft-search eligibility check if available. If not, 8% is a reasonable mid-range starting point. Try different terms: a shorter term saves more interest but has a higher monthly payment. A longer term may erode the rate saving.
The side-by-side panel shows total interest and clearance time for both routes. The net result shows the saving or additional cost. The verdict explains why, and flags minimum payment traps or term-length mismatches.
Move the loan term slider to find the shortest term where the monthly payment is affordable. This is the term that maximises the saving. If no term produces a saving (cards are being cleared efficiently at high payments), the verdict will say so.
When consolidation costs more despite a lower rate
A lower rate does not always mean a lower total cost. If the cards are being cleared efficiently (at payments significantly above the minimum), the clearance time may be shorter than the loan term. In that scenario, the cards finish first and the loan keeps charging interest for the remaining months of its term. The additional months of loan interest can exceed the rate saving.
For example, £5,000 across two cards at an average of 20% APR, with combined payments of £250 per month, clears in approximately 24 months with approximately £1,060 in interest. A consolidation loan at 8% APR over 5 years has a monthly payment of approximately £101 and total interest of approximately £1,083. The loan rate is less than half the card rate, but the total interest is higher because the debt is outstanding for 60 months instead of 24. The loan also locks in 5 years of payments where the cards would have been clear in 2 years.
The calculator flags this by comparing the loan term against the card clearance time. If the loan term is longer, the verdict warns that the saving may be reduced or eliminated. Shortening the loan term is the fix: a 2-year loan on the same £5,000 at 8% has a monthly payment of approximately £226 and total interest of approximately £430, saving £630 compared to the cards. The guide to is debt consolidation right for you covers the broader decision framework.
The minimum payment trap on credit cards
Credit card minimum payments are typically the higher of 2.5% of the outstanding balance or £5. At these levels, most of each payment covers the monthly interest charge, and very little reduces the principal balance. A £3,000 balance at 22% APR on minimum payments takes over 25 years to clear and costs over £3,000 in interest: more than the original amount borrowed.
When the calculator detects a card with payments close to the minimum, it flags the trap. In this scenario, consolidation to a personal loan is almost always the better route, because the loan has a fixed term and a fixed end date. The interest rate on the loan may be lower, but even if the loan rate is comparable to the card rate, the fixed term forces the debt to be cleared in a defined period rather than stretching over decades.
The most important step after consolidating card debt is not to use the cards again. If the balances are transferred to a loan and the cards are then used to accumulate new balances, the total debt increases rather than decreasing. The guide to personal loans vs credit cards covers the structural differences, and the guide to what is debt consolidation covers the process and risks in full.
Related tools
Broader consolidation tool covering all debt types, including secured lending options for homeowners.
Model the consolidation loan independently at any amount, APR, and term.
For new purchases rather than existing debt. Compares the cost of funding a purchase by loan vs card.
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Guides and tools covering secured loans, debt consolidation, and home improvementsFrequently asked questions
Does this include balance transfer fees?
No. This calculator models consolidation through a new personal loan, not a balance transfer credit card. If you are considering a 0% balance transfer card instead, the fee (typically 1% to 3% of the balance transferred) should be factored into the comparison. The personal loan vs credit card comparator handles 0% promotional rates and is the more appropriate tool for that scenario.
For personal loan consolidation, most mainstream lenders do not charge an arrangement fee, so the loan cost in this calculator reflects the total interest only. If a specific lender does charge a fee, add it mentally to the loan’s total cost when reading the result, or use the loan offer comparison tool which includes a fee field.
What happens to my credit score if I consolidate?
Consolidating credit card debt into a personal loan creates several changes on the credit file. The personal loan application triggers a hard search (one-off, minor impact). The new loan account appears as an active instalment account. The card balances drop to zero (or close to it), which significantly improves credit utilisation, one of the most heavily weighted scoring factors. The net effect on the credit score is often positive, because the utilisation improvement outweighs the hard search impact.
The risk is if the cards are used again after consolidation. If new balances accumulate on the cards while the loan is also being repaid, the total debt increases and the credit file shows both the loan and the card balances, which worsens the assessment. Closing the cards after consolidation, or at least not using them, prevents this. The guide to how personal loans affect your credit score covers the mechanics in detail.
Should I consolidate all my cards or just some?
Consolidating all cards into a single loan produces the simplest outcome: one payment, one rate, one end date. However, if one card has a low balance that will be cleared in a few months at the current payment, including it in the consolidation may not save money because the remaining interest on that card is already small. The calculator allows modelling different combinations by adding or removing cards to see which produces the largest net saving.
For borrowers with a mix of high-APR and low-APR cards, consolidating only the high-APR balances and continuing to pay the low-APR cards independently can produce a better outcome than consolidating everything. The debt prioritisation tool helps identify which debts to consolidate and which to leave in place.
What if I cannot get a personal loan at a rate lower than my card APR?
If the personal loan rate available is similar to or higher than the card APRs, consolidation does not produce an interest saving. However, the loan still provides a structural benefit: a fixed term with a guaranteed end date, which the cards do not. For borrowers trapped in minimum payments on cards, a personal loan at even the same rate clears the debt in a defined period rather than stretching over decades.
If the loan rate is significantly higher than the card rates (uncommon, but possible for borrowers with lower credit profiles), consolidation is unlikely to be beneficial on either cost or structural grounds. In this scenario, increasing the card payments to well above the minimum is the more effective route. The calculator shows this: if the card total cost is lower than the loan total cost, the verdict recommends staying with the cards.
Will the lender pay off the cards directly?
Some lenders offer to pay the card balances directly as part of the consolidation process, sending the funds to the card providers rather than to the borrower’s bank account. This ensures the cards are cleared and reduces the risk of the funds being used for other purposes. Not all lenders offer this, and it is not a requirement. If the funds are sent to the borrower’s account, the borrower is responsible for using them to clear the cards.
If the lender does pay the cards directly, check that the full balance on each card is cleared, including any interest accrued since the last statement. A small residual balance left on a card will continue to accrue interest. Contacting each card provider after the payment to confirm a zero balance and requesting closure of the account (if desired) ensures the consolidation is complete.
Squaring Up
Moving credit card debt to a personal loan saves money when the lower loan rate reduces the total interest by more than the difference in term length adds. The calculator models both routes month by month and shows the net result. If card payments are close to the minimum, consolidation is almost always the better route because the loan provides a fixed end date. If card payments are high and clearance is efficient, a longer loan term can cost more despite the lower rate. The key is to match the loan term to the card clearance time, not to extend it for a lower monthly payment. And the most important step after consolidation is not to use the cards again.
Explore all loan guides and tools
Everything in one place, across secured loans, debt consolidation, and home improvementsThis calculator is for illustrative purposes only and does not constitute financial advice. Card minimum payments are modelled at the higher of 2.5% of the balance or £5. All loan and card rates are illustrative. Consolidating credit card debt into a personal loan does not reduce the total amount owed; it restructures it into a different product with different terms. If the cards are used again after consolidation, the total debt increases. The loan rate offered to any individual depends on their credit profile, income, and the lender’s criteria. Missed repayments can affect your credit rating and may result in further action.
