Home > Calculators > Debt Consolidation Calculator
How to Use This Calculator
- Start by listing each of your current debts in the table above.
- Choose the debt type, enter the balance, and add the monthly payment if you know it — or leave it blank and the calculator will estimate it at about 3% of the balance (typical for credit cards).
- After entering your debts, fill in the estimated current interest rate, along with the new consolidation loan rate, loan term, and any one-time fees you expect.
- Click Calculate to compare your current monthly payments and payoff time with a new consolidated loan. Use the Share Results button to quickly copy your numbers and send them to yourself or a professional for next steps.
PRO TIP: Use this calculator to determine the savings you will enjoy from refinancing your mortgage to consolidate high interest debt. Use our Mortgage Payment Calculator to determine your new mortgage payment would be after a refinance.
Frequently Asked Questions
Frequently Asked Questions
A debt consolidation calculator helps you estimate what your new monthly payment could be if you combine multiple debts—such as credit cards, lines of credit, car loans, or personal loans—into one single loan or mortgage.
By entering your balances, interest rates, and payment terms, the calculator shows whether consolidating could lower your monthly payment, reduce interest, or simplify your finances.
Most Canadians use a debt consolidation calculator to combine:
- Credit card balances
- Personal loans
- Lines of credit
- Car loans
- Payday or installment loans
- Tax debt (in some cases)
If you own a home, debts can sometimes be consolidated using a refinance or second mortgage, which often results in lower interest rates compared to unsecured debt.
Debt consolidation can lower your monthly payment by:
- Reducing your interest rate
- Extending the repayment period
- Converting high-interest unsecured debt into a lower-interest secured loan
However, a lower payment doesn’t always mean paying less interest overall. This calculator helps you compare before-and-after payments so you can make an informed decision.
No. Using a debt consolidation calculator is completely free and does not impact your credit score.
It’s a planning tool only. Your credit is only affected if you formally apply for a loan or mortgage with a lender.
