Calculator · Compare what you pay now on several debts against a single consolidation loan.
Debt consolidation calculator
Enter your total balance, the average rate you pay now and the rate and term of the consolidation loan to see whether the single payment actually reduces what you pay.
Run the numbers
Consolidation only reduces total cost when the interest saving is not cancelled out by a longer term. Stretching a balance over more years can lower the payment while raising the total.
How this works
Two numbers decide the answer
Consolidation changes the rate and the term at the same time. A lower rate over the same term saves money. A lower rate over a much longer term can cost more in total while making the monthly payment feel easier. Both effects are visible in the comparison above.
Why consolidation fails for some borrowers
If the spending that created the balances continues, the cards refill and the consolidated loan becomes an extra debt rather than a replacement. Consolidation works when it is paired with a spending change and a plan to repay, not as a standalone transaction.
What else changes
- Several tradelines are replaced by one, which changes the mix on your credit file.
- If the loan is secured against your home, the debt becomes secured — a serious change in risk.
- A longer term means you are committed for longer, usually with a prepayment penalty.
When consolidation is not the right tool
If the balances are already unmanageable, a licensed insolvency trustee can explain consumer proposals and bankruptcies. Only a trustee can administer either, and both carry long consequences that deserve professional advice rather than a comparison site.
Questions
Will consolidating lower my monthly payment?
Usually, especially if the new term is longer. A lower payment is not the same as a lower cost, so compare the total repaid as well as the monthly figure.
Is a debt consolidation loan the same as a consumer proposal?
No. A consolidation loan is ordinary borrowing at a negotiated rate. A consumer proposal is a legal process administered by a licensed insolvency trustee that reduces what you owe.
Does consolidation hurt my credit?
It replaces several active accounts with one, which changes your file mix. Making the single payment on time generally helps over time. Ask the lender what kind of credit inquiry it will run.
Compare loan options
We match, we do not lend. No amount, term or rate is promised on this page — the calculator only models the numbers you entered.
LoanGoose is a loan matching and comparison service, not a lender. We do not make loans, set rates or make credit decisions. We may earn a commission when you click or apply through our links. The lowest rates are only available to the most qualified applicants.
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Lending rules and benchmark rates
The sourced rules these calculators assume.
Sources
- Financial Consumer Agency of Canada — debt and borrowing —
- Payday Lending Regulations, SOR/2024-114 —
- OSFI Guideline B-20 —
Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.