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Australia · FY2025

Debt Consolidation Calculator

Calculate potential savings from consolidating high-interest debts into a lower-rate loan.

Last reviewed: 15 March 2026Source: FCA — Credit cardsUpdated every: rate change
Debt Consolidation Calculator · AUCredit & Debt

Rates & sources

Credit-card minimum-payment mechanics. Interest compounds daily on unpaid balances at the card APR.

Source: FCA — Credit cards — figures refreshed at the start of each tax year.

When to use this calculator

  • When you need a fast estimate before making a bigger decision.
  • When you want to compare a few scenarios using the same assumptions.
  • When you need a clearer starting point before using a detailed quote or formal document.

A realistic Australia planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Total Debt (A$)

15000

Current Average APR (%)

5%

Consolidation Loan APR (%)

A$560,000

Loan Term (Years)

A$560,000

After entering these figures, compare current cost, new cost and saving before deciding which scenario looks strongest.

How to read your results

Current Cost

Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.

New Cost

Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.

Saving

Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.

Method & assumptionsAuthoritative sources

Compare your current debt payments against consolidating into a single loan. Shows total cost difference and monthly payment reduction.

Common mistakes

  • !Using optimistic assumptions without testing a more cautious scenario as well.
  • !Comparing outputs from different tools without checking that the inputs match.
  • !Treating the result as a final quote instead of a planning estimate.

What to do next

  • Try at least one more scenario so you can compare a realistic range instead of a single estimate.
  • Use the related calculators below to cross-check the decision from another angle.
  • Open one of the linked guides if you need more context before you act on the result.

Frequently asked

Yes, if the new rate is significantly lower. Calculate total cost saved over the loan term.

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