Debt Consolidation Loan Calculator

A debt consolidation loan calculator can help you determine if combining your outstanding debts into a single personal loan will help you better manage your debt. It can also help you understand how these loans may change your monthly payments and how much interest you may have to pay.

Here’s how a debt consolidation loan calculator works and how you can calculate personal loan payments.

Understanding the Debt Consolidation Loan Calculator Terms

Knowing the terminology behind a debt consolidation loan will ensure you can enter accurate information into a calculator to get the most helpful results.

Interest Rate

Interest is the amount a lender charges you for borrowing money. It is usually a percentage of the amount borrowed that lenders factor into your repayment. Remember that your creditworthiness will impact the interest rates your lender offers you.

Always aim for a debt consolidation loan with a lower interest rate than what you owe on your existing debts. Keep in mind, though, that even if you find a lower interest rate, you may end up paying more on your debts in the long run if your consolidation loan’s term length is longer than that of your current debts.


Personal loans used for debt consolidation can have repayment periods ranging from one year to five years. These are term loans that have a fixed repayment schedule.

Loan Amount

When applying for a debt consolidation loan, you will need to know exactly how much money you require to pay off your existing high-interest debt.

If you’re looking to consolidate credit card debt, the sum of your outstanding balances should be the loan amount you apply for. Ultimately, you’ll repay your total loan amount plus any interest and processing fees.

How do you calculate a personal loan payment?

Input the debt you currently owe on credit cards or loans, your current monthly payments, and the annual percentage rate (APR) you pay on each.

Assume you have three credit card balances that you need to pay down:

  • The first credit card carries a balance of $6,000 with an 21.24% APR.
  • The second card has a balance of $2,500 and a 20.18% APR.
  • The third card has a balance of $1,000 and a 19.07% APR.

If your goal is to pay down this total debt of $9,500 within 24 months, your monthly payment would be around $487, and over 24 months, you would pay a total interest of $2,186.

Let’s say you decide to consolidate this debt using a personal loan with a 14.99% APR and a 24-month repayment term. Your monthly payments reduce to $461, and you pay a total interest of $1,554.

Monthly Personal Loan Calculator
Loan Amount $9,500
Loan Term (months) 24
Interest Rate 14.99%
Total Interest Paid $1,554
Total Repayment $11,054
Monthly Payment $461


After the Debt Consolidation Loan Calculator

Results from a calculator should be considered estimates since calculators themselves can’t guarantee a certain interest rate. Lenders consider the applicant’s creditworthiness and income to determine the interest rate they offer. Lower creditworthiness may make some borrowers ineligible for a low enough interest rate that would make debt consolidation a good idea.

Frequently Asked Questions

When is the best time to consolidate your debt?

It can be beneficial to consolidate your debt when you’re able to find a personal loan with a lower interest rate than that of your outstanding debts.

Disclaimer: Citi offers personal loans to both existing Citi customers and new Citi customers that meet specific eligibility criteria, including an established credit and income history along with additional factors determined by Citi. If you think you could benefit from a Citi Personal Loan, apply online today.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.

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