Debt consolidation calculator
Enter your total debt, current rate and current payment, then the rate and term of a consolidation loan, to see whether consolidating reduces the interest you…
Estimated interest saved
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How this calculator works
- Amortise your current debt at the current rate and payment to find how long it takes to clear and what it costs in interest.
- Calculate the payment and total interest for the consolidation loan at the new rate and term.
- Subtract the new interest cost from the current interest cost to estimate the saving.
- Compare the new monthly payment with what you pay today.
Formula: Current interest = current payment × months to clear − balance; new interest = new payment × term − balance
Frequently asked questions
Does a lower rate always mean a better deal?
Not always. A longer term can mean more total interest even at a lower rate. Compare the total interest cost, not only the payment.
What if my payment does not cover the interest?
The calculator will tell you. If your payment is less than the monthly interest, the balance never falls and you would need a higher payment or a different solution.
Is consolidating unsecured debt into a secured loan risky?
Yes. If you secure the loan against your home or vehicle and default, you could lose that asset. Understand the risk before consolidating.
Sources
- Office of the Superintendent of Bankruptcy — Government of Canada — OSB
- Financial Consumer Agency of Canada — Financial Consumer Agency of Canada
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.
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If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.
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