Helen Tippell
Digital Copywriter
Debt consolidation calculator
17 July 2026
10 min read
Use our consolidation loan calculator to work out if you could decrease your monthly payments by consolidating your debt.
A debt consolidation loan is a loan that allows you to move all your debt (such as personal loans, credit cards and store cards) into one place.
This means you will have one big loan to cover the amount of your current debt, rather than having several little ones. You will then, usually, only have to make one monthly repayment and in theory your debt might feel easier to manage.
Even though a debt consolidation loan puts all your debt in one place, it is not always the cheaper option. It will only save you money if you’re able to get a loan that beats the cost of what you’re currently paying.
Use our consolidation loan calculator to work out if you could decrease your monthly payments and save money overall by consolidating your debt.
To use the calculator, simply input details about your current loan/s:
Left to pay: the amount you still owe
Interest rate: the interest rate on your current loan (you can find this in your loan contract, or log in to your online account to check)
Monthly payment: how much you pay each month
You can then add the details of a new consolidation loan:
Length (months): the length of the new loan in months (the longer your new loan, the less you’ll pay each month, but your overall savings will likely be less)
Interest rate: the interest rate of your new loan
We’ll then calculate your new monthly payments, so you can see if you’d be better off. We'll also show you whether you'd save or pay more in interest overall.
Bear in mind that these numbers are rounded and are intended as a guide only. They also assume that you won’t be charged any fees for moving your debt from one lender to another (e.g switching fees or early repayment charges). Always check the small print to see what applies to you.
Next step: Find and compare debt consolidation loans with ClearScore (a credit broker, not a lender) today.
Consolidation loan vs keeping existing debts
The calculator gives you the numbers, but it helps to see the broader trade-offs side by side. Use the table below alongside your results to decide whether a debt consolidation loan makes sense for your situation.
Factor | Keeping existing debts | Consolidation loan |
|---|---|---|
| Factor Number of monthly payments | Keeping existing debts Multiple - one per lender, each with its own due date | Consolidation loan One single monthly repayment to a single lender |
| Factor Interest rates | Keeping existing debts May vary widely; some debts could carry high APRs (e.g. store cards or credit cards) | Consolidation loan Often a single rate - but not all consolidation loans are fixed; some are variable-rate, so check the individual offer. Potentially lower if your credit score qualifies you for a competitive deal |
| Factor Total interest cost | Keeping existing debts Could be higher if any debts carry above-average rates, but shorter remaining terms may limit total interest | Consolidation loan Could be lower overall, but a longer loan term can increase total interest despite a lower rate |
| Factor Monthly payment amount | Keeping existing debts Combined payments may be higher, especially with minimum-payment credit card debt | Consolidation loan Often lower when spread over a longer term - but check the total cost, not just the monthly figure |
| Factor Early repayment charges | Keeping existing debts None if you continue as normal; charges may apply if you settle early to consolidate | Consolidation loan Check the new lender's terms - some consolidation loans carry their own early repayment fees |
| Factor Simplicity | Keeping existing debts Harder to track multiple balances, rates, and payment dates | Consolidation loan Easier to manage with one direct debit and one balance to monitor |
| Factor Risk of paying more | Keeping existing debts Lower if existing debts are nearly paid off or already on low rates | Consolidation loan Higher if the new rate is not meaningfully lower, the term is much longer, or fees apply |
When consolidation saves money
Consolidation tends to work in your favour when your existing debts carry high interest rates - for example, credit cards at 20%+ APR - and you can secure a consolidation loan at a significantly lower rate. It also helps when you have several debts with years still to run, because the interest saving compounds over time.
When consolidation costs more
If your current debts are almost paid off or already sit on low promotional rates, a new loan may add unnecessary interest. Extending the repayment period to reduce monthly outgoings is another common trap: the lower payment feels affordable, but the total interest over the longer term can outweigh any rate advantage. Always compare the total repayable amount, not just the monthly figure, using a loan consolidation calculator before you commit.
Tips to get the best consolidation loan rate
Once the calculator shows that consolidation could save you money, the next step is securing the most competitive rate possible. These practical tips can help you get a better deal.
Check your credit score before you apply
Lenders reserve their lowest rates for applicants with credit scores in the Looking bright (605-724) or Soaring high (725+) bands. Log in to ClearScore to review your score and report for free - checking won't affect your score. If there are errors - such as an address that is out of date or a settled account still showing as open - dispute them before you apply. Even small corrections can move your score enough to unlock a better rate band.
Use eligibility checkers to compare without affecting your score
Every full loan application leaves a hard search on your credit file, and several in a short period can lower your score. Eligibility checkers - like the one built into ClearScore - use a soft search to show which loans you are likely to be approved for, without leaving a mark. Compare offers this way first, then apply only to the one that best fits.
Look at total cost, not just the monthly payment
A lower monthly repayment can be tempting, but it often comes from stretching the loan over a longer term. Use the consolidation loan calculator to compare the total amount repayable - including all interest - across different term lengths. The cheapest option overall is usually the shortest term you can comfortably afford.
Watch out for early repayment charges on existing debts
Before switching, check whether your current lenders charge a penalty for settling early. Some personal loans include early repayment fees of one to two months' interest. Factor these costs into your consolidation calculation - they can wipe out the interest saving if your existing debts are close to being paid off.
Consider the loan term carefully
Choosing a term that mirrors the average remaining life of your current debts gives you the fairest like-for-like comparison. If you shorten the term, your monthly payment rises but you pay less interest in total. If you lengthen it, the monthly amount drops but the overall cost climbs. Run the calculator with two or three different term lengths to find the balance between affordability and total savings.
Frequently asked questions about debt consolidation
Will a debt consolidation loan affect my credit score?
Yes, but the effect can be positive or negative depending on how you manage it. Applying for a new loan triggers a hard search, which may lower your score by a few points in the short term. The effect on your credit profile after that varies by lender and by how you manage the new and existing accounts - consolidation does not guarantee a higher credit score, and credit reference agency data is only one of the factors lenders take into account. The key is to avoid running up new debt on the credit cards or accounts you have just paid off - lenders view rising balances alongside a new loan as a warning sign.
Can I consolidate debt if I have bad credit?
It is possible, but your options will be more limited and the interest rate offered is likely to be higher. Some specialist lenders provide consolidation loans for people with credit scores in the Moving on up (410-519) or Let's start climbing (0-409) bands, though the rate may not beat what you are already paying - which defeats the purpose. Before applying, use a debt consolidation calculator to check whether the numbers still work at a higher rate. If consolidation does not save you money, free debt advice services such as StepChange or Citizens Advice can help you explore alternatives like a debt management plan.
What is the difference between a secured and unsecured consolidation loan?
An unsecured consolidation loan is based purely on your creditworthiness - the lender has no claim on your property if you fall behind on payments. A secured loan is tied to an asset, usually your home, which means the lender can repossess it if you default. Secured loans often come with lower interest rates and higher borrowing limits, but the risk is significantly greater. For most people consolidating credit card or store card debt, an unsecured loan is the safer choice. Only consider a secured loan if you fully understand the consequences of missing payments.
Does consolidating debt reduce the total amount I owe?
No - a consolidation loan does not write off any of your debt. You still owe the same total balance; you are simply moving it from several lenders to one. What can change is the amount of interest you pay on top of that balance. If the consolidation loan carries a lower rate and you do not extend the term significantly, you could pay less interest overall and clear the debt sooner. The debt consolidation calculator above shows you exactly how much interest you would save - or pay extra - so you can make an informed decision before committing.
How does a debt consolidation calculator work?
A debt consolidation calculator compares the cost of your existing debts against a single replacement loan. By entering details such as your current balances, interest rates, and monthly payments, the calculator estimates how much interest you would pay under your current arrangements - and how that figure changes if you switch to one consolidation loan at a different rate and term. Below are the most common questions people ask before using one.
What does a debt consolidation calculator actually calculate?
The calculator totals the remaining interest you would pay across all of your current loans, credit cards, and store cards if you continued making your existing monthly payments. It then calculates the total interest on a single consolidation loan over the term you choose. The difference between the two figures is your potential saving - or, in some cases, the extra cost of consolidating.
What information do I need before using the calculator?
You will need three pieces of information for every debt you want to include: the outstanding balance (how much you still owe), the current interest rate or APR, and your monthly repayment amount. For the consolidation loan side, you will need the interest rate you expect to be offered and the loan term in months. Most lenders display indicative rates on their websites, or you can use ClearScore to check offers you may be eligible for.
How is the interest saving worked out?
The calculator uses your remaining balances and interest rates to project the total interest payable on your existing debts until each one is cleared. It then runs the same projection for a single loan covering the combined balance at the new rate and term. The difference between these two totals is your potential saving - or, if the consolidation loan costs more, the additional amount you would pay. A longer consolidation term usually lowers your monthly payment but may increase the overall interest you pay, so it is worth experimenting with different term lengths.
Does the calculator account for fees and early repayment charges?
Most free debt consolidation loan calculators - including this one - focus on interest costs and do not automatically include arrangement fees, early repayment charges on your current debts, or balance-transfer fees. These costs can significantly affect whether consolidation genuinely saves you money, so always check the terms of both your existing agreements and any new loan offer before making a decision.
Helen Tippell
Digital Copywriter
17 July 2026
10 min read
Meet the author
Global Content Manager
Lucy Burgess
Lucy has a wealth of personal finance knowledge, and is one of our in-house experts.
Debt consolidation calculator
Helen Tippell
Digital Copywriter
17 July 2026
10 min read
Use our consolidation loan calculator to work out if you could decrease your monthly payments by consolidating your debt.
A debt consolidation loan is a loan that allows you to move all your debt (such as personal loans, credit cards and store cards) into one place.
This means you will have one big loan to cover the amount of your current debt, rather than having several little ones. You will then, usually, only have to make one monthly repayment and in theory your debt might feel easier to manage.
Even though a debt consolidation loan puts all your debt in one place, it is not always the cheaper option. It will only save you money if you’re able to get a loan that beats the cost of what you’re currently paying.
Use our consolidation loan calculator to work out if you could decrease your monthly payments and save money overall by consolidating your debt.
To use the calculator, simply input details about your current loan/s:
Left to pay: the amount you still owe
Interest rate: the interest rate on your current loan (you can find this in your loan contract, or log in to your online account to check)
Monthly payment: how much you pay each month
You can then add the details of a new consolidation loan:
Length (months): the length of the new loan in months (the longer your new loan, the less you’ll pay each month, but your overall savings will likely be less)
Interest rate: the interest rate of your new loan
We’ll then calculate your new monthly payments, so you can see if you’d be better off. We'll also show you whether you'd save or pay more in interest overall.
Bear in mind that these numbers are rounded and are intended as a guide only. They also assume that you won’t be charged any fees for moving your debt from one lender to another (e.g switching fees or early repayment charges). Always check the small print to see what applies to you.
Next step: Find and compare debt consolidation loans with ClearScore (a credit broker, not a lender) today.
Consolidation loan vs keeping existing debts
The calculator gives you the numbers, but it helps to see the broader trade-offs side by side. Use the table below alongside your results to decide whether a debt consolidation loan makes sense for your situation.
Factor | Keeping existing debts | Consolidation loan |
|---|---|---|
| Factor Number of monthly payments | Keeping existing debts Multiple - one per lender, each with its own due date | Consolidation loan One single monthly repayment to a single lender |
| Factor Interest rates | Keeping existing debts May vary widely; some debts could carry high APRs (e.g. store cards or credit cards) | Consolidation loan Often a single rate - but not all consolidation loans are fixed; some are variable-rate, so check the individual offer. Potentially lower if your credit score qualifies you for a competitive deal |
| Factor Total interest cost | Keeping existing debts Could be higher if any debts carry above-average rates, but shorter remaining terms may limit total interest | Consolidation loan Could be lower overall, but a longer loan term can increase total interest despite a lower rate |
| Factor Monthly payment amount | Keeping existing debts Combined payments may be higher, especially with minimum-payment credit card debt | Consolidation loan Often lower when spread over a longer term - but check the total cost, not just the monthly figure |
| Factor Early repayment charges | Keeping existing debts None if you continue as normal; charges may apply if you settle early to consolidate | Consolidation loan Check the new lender's terms - some consolidation loans carry their own early repayment fees |
| Factor Simplicity | Keeping existing debts Harder to track multiple balances, rates, and payment dates | Consolidation loan Easier to manage with one direct debit and one balance to monitor |
| Factor Risk of paying more | Keeping existing debts Lower if existing debts are nearly paid off or already on low rates | Consolidation loan Higher if the new rate is not meaningfully lower, the term is much longer, or fees apply |
When consolidation saves money
Consolidation tends to work in your favour when your existing debts carry high interest rates - for example, credit cards at 20%+ APR - and you can secure a consolidation loan at a significantly lower rate. It also helps when you have several debts with years still to run, because the interest saving compounds over time.
When consolidation costs more
If your current debts are almost paid off or already sit on low promotional rates, a new loan may add unnecessary interest. Extending the repayment period to reduce monthly outgoings is another common trap: the lower payment feels affordable, but the total interest over the longer term can outweigh any rate advantage. Always compare the total repayable amount, not just the monthly figure, using a loan consolidation calculator before you commit.
Tips to get the best consolidation loan rate
Once the calculator shows that consolidation could save you money, the next step is securing the most competitive rate possible. These practical tips can help you get a better deal.
Check your credit score before you apply
Lenders reserve their lowest rates for applicants with credit scores in the Looking bright (605-724) or Soaring high (725+) bands. Log in to ClearScore to review your score and report for free - checking won't affect your score. If there are errors - such as an address that is out of date or a settled account still showing as open - dispute them before you apply. Even small corrections can move your score enough to unlock a better rate band.
Use eligibility checkers to compare without affecting your score
Every full loan application leaves a hard search on your credit file, and several in a short period can lower your score. Eligibility checkers - like the one built into ClearScore - use a soft search to show which loans you are likely to be approved for, without leaving a mark. Compare offers this way first, then apply only to the one that best fits.
Look at total cost, not just the monthly payment
A lower monthly repayment can be tempting, but it often comes from stretching the loan over a longer term. Use the consolidation loan calculator to compare the total amount repayable - including all interest - across different term lengths. The cheapest option overall is usually the shortest term you can comfortably afford.
Watch out for early repayment charges on existing debts
Before switching, check whether your current lenders charge a penalty for settling early. Some personal loans include early repayment fees of one to two months' interest. Factor these costs into your consolidation calculation - they can wipe out the interest saving if your existing debts are close to being paid off.
Consider the loan term carefully
Choosing a term that mirrors the average remaining life of your current debts gives you the fairest like-for-like comparison. If you shorten the term, your monthly payment rises but you pay less interest in total. If you lengthen it, the monthly amount drops but the overall cost climbs. Run the calculator with two or three different term lengths to find the balance between affordability and total savings.
Frequently asked questions about debt consolidation
Will a debt consolidation loan affect my credit score?
Yes, but the effect can be positive or negative depending on how you manage it. Applying for a new loan triggers a hard search, which may lower your score by a few points in the short term. The effect on your credit profile after that varies by lender and by how you manage the new and existing accounts - consolidation does not guarantee a higher credit score, and credit reference agency data is only one of the factors lenders take into account. The key is to avoid running up new debt on the credit cards or accounts you have just paid off - lenders view rising balances alongside a new loan as a warning sign.
Can I consolidate debt if I have bad credit?
It is possible, but your options will be more limited and the interest rate offered is likely to be higher. Some specialist lenders provide consolidation loans for people with credit scores in the Moving on up (410-519) or Let's start climbing (0-409) bands, though the rate may not beat what you are already paying - which defeats the purpose. Before applying, use a debt consolidation calculator to check whether the numbers still work at a higher rate. If consolidation does not save you money, free debt advice services such as StepChange or Citizens Advice can help you explore alternatives like a debt management plan.
What is the difference between a secured and unsecured consolidation loan?
An unsecured consolidation loan is based purely on your creditworthiness - the lender has no claim on your property if you fall behind on payments. A secured loan is tied to an asset, usually your home, which means the lender can repossess it if you default. Secured loans often come with lower interest rates and higher borrowing limits, but the risk is significantly greater. For most people consolidating credit card or store card debt, an unsecured loan is the safer choice. Only consider a secured loan if you fully understand the consequences of missing payments.
Does consolidating debt reduce the total amount I owe?
No - a consolidation loan does not write off any of your debt. You still owe the same total balance; you are simply moving it from several lenders to one. What can change is the amount of interest you pay on top of that balance. If the consolidation loan carries a lower rate and you do not extend the term significantly, you could pay less interest overall and clear the debt sooner. The debt consolidation calculator above shows you exactly how much interest you would save - or pay extra - so you can make an informed decision before committing.
How does a debt consolidation calculator work?
A debt consolidation calculator compares the cost of your existing debts against a single replacement loan. By entering details such as your current balances, interest rates, and monthly payments, the calculator estimates how much interest you would pay under your current arrangements - and how that figure changes if you switch to one consolidation loan at a different rate and term. Below are the most common questions people ask before using one.
What does a debt consolidation calculator actually calculate?
The calculator totals the remaining interest you would pay across all of your current loans, credit cards, and store cards if you continued making your existing monthly payments. It then calculates the total interest on a single consolidation loan over the term you choose. The difference between the two figures is your potential saving - or, in some cases, the extra cost of consolidating.
What information do I need before using the calculator?
You will need three pieces of information for every debt you want to include: the outstanding balance (how much you still owe), the current interest rate or APR, and your monthly repayment amount. For the consolidation loan side, you will need the interest rate you expect to be offered and the loan term in months. Most lenders display indicative rates on their websites, or you can use ClearScore to check offers you may be eligible for.
How is the interest saving worked out?
The calculator uses your remaining balances and interest rates to project the total interest payable on your existing debts until each one is cleared. It then runs the same projection for a single loan covering the combined balance at the new rate and term. The difference between these two totals is your potential saving - or, if the consolidation loan costs more, the additional amount you would pay. A longer consolidation term usually lowers your monthly payment but may increase the overall interest you pay, so it is worth experimenting with different term lengths.
Does the calculator account for fees and early repayment charges?
Most free debt consolidation loan calculators - including this one - focus on interest costs and do not automatically include arrangement fees, early repayment charges on your current debts, or balance-transfer fees. These costs can significantly affect whether consolidation genuinely saves you money, so always check the terms of both your existing agreements and any new loan offer before making a decision.
Helen Tippell
Digital Copywriter
17 July 2026
10 min read
Meet the author
Global Content Manager
Lucy Burgess
Lucy has a wealth of personal finance knowledge, and is one of our in-house experts.