https://calculating.ca/calculators/finance-money/debt-consolidation-cost-calculator/
Finance & Money / THE MITEY TOOLKIT
Debt Consolidation Cost Comparison
Compare a new fixed-term loan with paying your existing debts using a fixed combined monthly budget.
Modeled interest and fee saving
$4,908.92
From your inputs. Explore the breakdown below.
- New monthly payment
- $447.93
- Monthly payment change
- -$2.07
- New interest plus fees
- $3,800.68
- Current debt payoff time
- 5 yr 0 mo
- A lower monthly payment can increase total borrowing cost when repayment lasts longer.
- The current plan rolls freed payments into the highest-rate remaining debt.
FOLLOW THE CASH FLOW
Annual cash-flow totals
Balance is the period-end value; growth and payments are totals for that year or final partial year. Download the ledger for every modeled period. Figures in CAD.
| Year | Closing balance | Interest / growth | Payment / withdrawal |
|---|---|---|---|
| Now | $18,000.00 | $0.00 | $0.00 |
| 1 | $14,085.99 | $1,461.16 | $5,375.17 |
| 2 | $9,804.82 | $1,094.00 | $5,375.17 |
| 3 | $5,122.05 | $692.40 | $5,375.17 |
| 4 | $0.00 | $253.12 | $5,375.17 |
CHANGE ONE VARIABLEWhat moves your answer?
Compare five values while keeping every other input the same. These are scenarios, not likelihoods or forecasts.
| Input value | Primary result | Use scenario |
|---|
BEHIND THE ANSWER
Formula and method
Saving = current-plan interest − new-loan interest − up-front fees.
Current debts accrue nominal annual interest monthly. Fixed entered minimums are paid first, with the full combined budget redirected to the highest-rate remaining balance. The consolidation loan amortizes the same total principal over the selected months. Fees are paid in cash and not financed.
Context sources checked October 24, 2026
These sources explain the subject. The model follows the formula and assumptions shown here; a source link does not imply endorsement.
Worked examples
Two debts and a four-year loan
- Debt 1 · balance:
- 12000
- Debt 1 · annual rate:
- 19.9
- Debt 1 · fixed monthly minimum:
- 300
- Debt 2 · balance:
- 6000
- Debt 2 · annual rate:
- 8.9
- Debt 2 · fixed monthly minimum:
- 150
- Debt 3 · balance:
- 0
- Debt 3 · annual rate:
- 0
- Debt 3 · fixed monthly minimum:
- 0
- New loan annual rate:
- 9
- New loan term · months:
- 48
- Up-front consolidation fees:
- 300
Modeled interest and fee saving: $4,908.92
Assumptions and limits
- No new spending, fees on current debts, rate changes or lender-specific minimum formulas.
- The monthly budget for the current plan equals the entered fixed minimum payments and stays constant after a debt is cleared.
- A new loan is a scenario, not evidence of credit availability or a recommendation to secure debt against a home.
This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.
Common mistakes to avoid
- Treating an illustrative rate as a lender quote or a return forecast.
- Comparing scenarios with different time periods or leaving out relevant fees.
Frequently asked questions
Why might consolidation cost more?
A longer repayment period, fees or a higher rate can outweigh a lower monthly payment. Compare total interest and fees, the repayment period and the security required by any actual offer.
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