About the Debt Consolidation Calculator
What is the Debt Consolidation Calculator?
Debt consolidation replaces several expensive debts — credit cards, personal loans, app loans — with one loan at a lower rate. You get one EMI, lower interest and a clear end date.
Enter your total outstanding, the blended current rate, the consolidation loan rate, tenure and fees. The calculator shows the current and new EMI, the monthly saving, the net saving after fees and the break-even period.
How to use the Debt Consolidation Calculator
- Total Outstanding (INR) (sample: 6,50,000)
- Current Blended Rate (%) (sample: 20)
- Consolidation Rate (%) (sample: 11)
- Repayment Years (sample: 5)
- Processing Fees (INR) (sample: 15,000)
- Press Compare Consolidation (results also refresh as you type). The result card shows the Net Saving, along with Current EMI, Consolidated EMI and Break-even.
Formula used
Net saving = (Interest at current rate − Interest at new rate) − Fees
- Blended rate = the balance-weighted average rate of your current debts
Consolidation only works if you stop adding new debt to the old cards.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Total Outstanding (INR) | 6,50,000 |
| Current Blended Rate (%) | 20 |
| Consolidation Rate (%) | 11 |
| Repayment Years | 5 |
| Processing Fees (INR) | 15,000 |
| Result | Value |
|---|---|
| Net Saving | ₹1,70,307 |
| Current EMI | ₹17,221 |
| Consolidated EMI | ₹14,133 |
| Break-even | 5 months |
Tips for using the Debt Consolidation Calculator
- Loans against FDs, gold or property usually offer the lowest consolidation rates.
- Do not extend the tenure too far, or total interest may rise.
- Close or freeze old cards after consolidating.