Finanzen
Debt Consolidation Calculator
See how much you can save by combining multiple high-interest debts into a single, lower-rate loan.
Verwendung
- Enter each of your current debts: balance, interest rate, and minimum monthly payment.
- Enter the new consolidation loan rate and term.
- The calculator compares your total current payments against the new single consolidated payment.
Formel
New Payment = Total Debt × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Interest Saved = Total Old Interest − New Total Interest
Interest Saved = Total Old Interest − New Total Interest
Debt consolidation combines multiple high-interest debts into a single lower-rate loan. This simplifies repayment and can significantly reduce total interest paid. The key is ensuring the new rate is lower than the weighted average of your existing debts.