Worked example: Debt Consolidation Calculator
Two interest-free debts. This fixed reference example shows one complete scenario; the interactive results above use your current inputs.
View the example inputs
- Existing balances
- 1000,2000
- Matching APRs (%)
- 0,0
- Matching fixed monthly payments
- 100,200
- New consolidation APR
- 0 %
- Term
- 1 years
- Financed origination fee
- 0 %
| Calculated quantity | Example result |
|---|---|
| Existing principal | $3,000.00 |
| New monthly payment | $250.00 |
| Existing total interest | $0.00 |
| New interest plus financed fee | $0.00 |
| Total interest/fee savings | $0.00 |
| Monthly payment reduction | $50.00 |
Understanding payments, principal and borrowing cost
Compare the payment and the total cost
An installment payment depends on the amount borrowed, the periodic interest rate and the repayment term. A longer term can make each installment smaller while increasing the number of interest charges. Compare the total paid and the payoff horizon as well as the advertised monthly amount.
Keep the loan’s note interest rate separate from fees and APR unless the calculator specifically asks for APR. Financed fees increase the balance; upfront fees reduce cash received. A zero-interest loan still requires repayment of principal. Check whether the quoted rate is fixed and whether the repayment frequency matches the calculation.
Use a schedule to check what changes
A loan schedule allocates each payment between interest and principal, then reports the remaining balance. Extra principal can reduce later interest without reducing the scheduled installment. A new or recast loan can change the installment itself.
Schedules here retain calculation precision and round displayed cells. Their CSV exports let you inspect the full sequence. If a lender uses different posting dates, daily interest, fees or rounding, its statement can differ from this modeled schedule.
Formula and calculation method
Each existing balance uses its own entered rate and fixed payment. Origination fee is added to the new principal.
Payoff horizons can differ. Compare total cost as well as monthly payment; no new borrowing or changing rates are modeled.
Reference Sources
Frequently asked questions
How does this calculator work?
Each existing balance uses its own entered rate and fixed payment. Origination fee is added to the new principal.
What assumptions should I check?
Payoff horizons can differ. Compare total cost as well as monthly payment; no new borrowing or changing rates are modeled.
Can I save or print this calculation?
Use Copy link with inputs to reproduce the scenario, Download results for a text record, or Print. Where a schedule is shown, its CSV download includes every row.