Add the debts you are paying today and compare them with one consolidation loan. See whether you would save money in total, not just each month.
The loan amount is set automatically to ₹2,40,000 (the total of your current debts).
Use the rate in a loan offer if you have one.
18% GST is added to this fee and foreclosure charges.
Average rate comparison
Your debts average 31.0% p.a. → New loan costs 16% p.a.
Using this calculator does not affect your credit score.
These tools use the debts you entered above.
Consolidating would cut your total cost by ₹25,383 and recover the upfront costs by month 4. You would also pay ₹5,806 less each month.
This compares costs only. Consolidation works only if you don't run the cleared credit cards back up.
Debt consolidation means taking one new loan to pay off several existing debts, such as credit card balances and other loans. You then make one monthly payment instead of several.
It saves money only when the new loan costs less than the debts it replaces, after fees. It doesn't reduce the amount you owe; it changes the rate you pay on it and the time you take to repay it. That is why this calculator compares total cost, not just the monthly payment.
Enter each card or loan with its outstanding amount, interest rate and monthly payment.
Check your loan agreements for the fee to close each loan early. Leave 0 if none.
Add the interest rate, tenure and processing fee from an offer, or a typical rate to estimate.
Check total savings and the break-even month, not just the new EMI. Compare tenures to find the best fit.
1. Your current debts: Monthly interest (annual rate ÷ 12) applies to balance, deducting monthly payment until balance is 0. 2. New loan EMI: P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1] where P is total debts. 3. Upfront costs = Processing fee + GST + foreclosure charges. 4. Net saving = Interest on current debts − interest on new loan − upfront costs. 5. Break-even = First month interest saved covers upfront costs.
Consolidation is not always the right move. It is likely to cost you more, or save very little, when:
The new rate isn't clearly lower than your current average. Fees and foreclosure charges then outweigh the small rate gap.
You stretch the tenure to cut the EMI. You pay less each month but more in total.
Your debts are nearly paid off. There isn't enough interest left to save.
Your existing loans carry high foreclosure charges.
You keep using the cleared credit cards. You end up with the new loan and new card debt.
A personal loan of ₹1,50,000 at 14% with 18 months left (4% foreclosure charge) and a ₹20,000 card balance at 42%. Their average rate is about 17.3%. Moving both to one loan at 16% for 18 months, with a 2% fee, actually costs ₹117 more in interest, and adds ₹11,092 in upfront costs, so it costs ₹11,209 more.
Stretching the same loan to 36 months cuts the monthly payment by ₹5,311 but costs ₹34,029 more in total.
Four things decide the result, and you can control most of them.
The bigger the gap between current debts' average rate and the new loan's rate, the more you save. Credit cards benefit most.
A longer tenure lowers EMI but adds interest. In the example, 48 mos cuts EMI by ₹1,636, but net savings drops from ₹25,385 to ₹2,662.
Processing fees, GST and foreclosure charges are paid upfront and eat into savings. Always check your Key Fact Statement.
A debt that ends in a few months has little interest left to save. Leave short, low-rate debts out of consolidation.
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