Wondering whether combining your debts into one loan could make your monthly payments more manageable? Use this free online debt consolidation calculator to compare your current monthly payment with an estimated new loan payment in Canadian dollars (CAD).
Enter your total debt, current interest rate, proposed loan rate, repayment term, and fees to explore potential payment differences and borrowing costs.
Compare Current Debt Payments With a Consolidation Loan
Debt consolidation involves combining eligible debts into one new borrowing arrangement. Instead of managing several payments, you may be able to make one regular loan payment. This calculator helps you compare your current monthly payment with the estimated payment on a consolidation loan, so you can assess whether the proposed amount fits your budget.
Calculate Potential Monthly Savings
Enter your total outstanding debt, average current interest rate, and current monthly payment. Then add the proposed loan rate, repayment term, and any fees.
The calculator estimates your new monthly payment and the difference between the two monthly amounts. A positive difference means the estimated new payment is lower; it does not necessarily mean the loan will cost less overall.
Understand the Total Cost of Debt Consolidation
A lower monthly payment can result from extending the repayment period, which may increase the total interest paid. Before consolidating, compare the interest rate, fees, repayment term, and total amount repayable with your existing debts. The best option is not always the one with the smallest monthly payment; consider both affordability now and the total cost over time.
When Should You Consider Debt Consolidation?
A consolidation loan may help simplify payments or reduce borrowing costs if you qualify for a competitive interest rate. However, the available rate depends on factors such as your credit history, income, existing debts, and the lender’s criteria. Check for fees or charges on your existing debts and confirm that the new repayment is affordable before making a decision.
Explore Related Loan Calculators
If you are comparing borrowing options, try our personal loan calculator to estimate payments on a personal loan. You can also use our loan payment calculator to explore monthly repayments. Compare the total cost of each option, including interest and fees, rather than choosing based only on the 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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