Want to know whether combining your existing debts into one loan could make repayments more manageable? Use this free online debt consolidation calculator to compare your current monthly payments with an estimated new loan payment. Enter your total debt, current interest rate, proposed loan rate, repayment term, and fees to explore potential monthly savings and repayment costs in pounds (£).
Compare Your Current Debts With a Consolidation Loan
A debt consolidation loan combines eligible debts into a single borrowing arrangement, potentially replacing several payments with one. This calculator compares your current monthly payment with an estimated payment on a new loan.
It can help you explore whether the proposed repayment fits your budget, but the result depends on the interest rates, loan term, fees, and payment figures you enter.
Calculate Potential Monthly Savings
Enter your total outstanding debt and current monthly payment, then add the proposed loan interest rate and repayment term. The calculator estimates the new monthly repayment and shows the difference between the two payment amounts. A positive difference means the estimated new payment is lower than your current payment; a negative difference means it is higher.
Understand the Total Cost of Debt Consolidation
A lower monthly repayment does not necessarily mean you will pay less overall. Extending your repayment term can reduce each payment while increasing the total interest paid over time. Before consolidating, compare the total amount repayable, any arrangement fees, the repayment period, and the interest rate with your existing borrowing.
When Could Debt Consolidation Be Worth Considering?
Consolidation may be worth exploring if it simplifies several payments or offers a lower borrowing rate. However, approval and the rate available depend on your circumstances and lender criteria.
Check whether existing debts have early repayment charges, whether the new loan has additional fees, and whether the proposed payment remains affordable alongside essential household costs.
Explore Other Loan Calculators
If you want to compare borrowing costs, use our personal loan calculator to estimate payments for a personal loan. Our loan payment calculator can also help you explore repayment amounts. Compare the total cost of each option rather than choosing solely on the basis of the lowest monthly payment.
Disclaimer: This calculator provides estimates for informational and educational purposes only, not financial, tax, legal, or professional advice. Results are based on the information entered and may differ from actual costs, payments, rates, fees, or eligibility. Verify details with the relevant lender, financial professional, or official source before making financial decisions.
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