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Debt Consolidation Calculator India 2026 – Save on Interest

Use this free Debt Consolidation Calculator in India to see whether combining all your debts into a single loan will reduce your monthly payment and total interest.

Compare your current debts vs a consolidation loan to see how much interest you can save.

Debt 1 Balance ($)

Debt 1 Rate (%)

Debt 2 Balance ($)

Debt 2 Rate (%)

Debt 3 Balance ($)

Debt 3 Rate (%)

Consolidation Loan Rate (%)

Loan Term (Years)

Currency

Monthly Consolidated Payment

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Current Monthly Min

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Interest Saved

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Blended Old Rate

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What is Debt Consolidation?

Debt consolidation combines multiple debts (credit cards, personal loans, etc.) into a single loan with one monthly payment — ideally at a lower interest rate. This simplifies repayment and can significantly reduce total interest paid.

Formula Used

Consolidated Payment = Total Debt × r(1+r)^n / [(1+r)^n − 1] Interest Saved = Old Total Interest − New Total Interest

Example Calculation

Example — US — $16,000 across 3 debts avg 18.8% → 10% personal loan 5 yrs

New payment: $340/mo | Old min payments: ~$400+/mo | Interest saved: ~$4,200

Example — UK — £10,000 across 2 cards avg 21% → 8.9% loan 4 yrs

New payment: £248/mo | Interest saved: £2,100

Example — Canada

C$20,000 across 3 debts averaging 19% APR, consolidated at 10% over 5 years. Old monthly: C$640 | New monthly: C$425 | Monthly saving: C$215 | 5-yr interest saved: C$9,200

Why Use This Calculator?

Debt consolidation makes financial sense when your new rate is significantly lower than your current blended rate. It also helps people who struggle to track multiple payments. However, extending the term can increase total interest even with a lower rate — always compare both.

Does consolidation hurt my credit score?▾

Applying for a new loan causes a hard inquiry. But paying off revolving credit can improve your credit utilization ratio, potentially boosting your score over time.

What's the difference between consolidation and refinancing?▾

Consolidation combines multiple debts into one. Refinancing replaces a single debt with a new one at better terms.

When does consolidation NOT make sense?▾

If the new loan has fees or a much longer term that results in more total interest paid, it may not be worth it. Always compare total cost, not just monthly payment.

💡 Tip: Debt consolidation works best when your new rate is at least 5 percentage points lower than your current blended rate.