Useful next calculations
When to use this calculator
- Before comparing personal loan or credit offers on the same amount and term.
- When you want to see total interest, not only the monthly payment.
- When you are choosing between a shorter term and a lower monthly debit.
- When you need a planning estimate before making a credit application.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Total Debt (£) | £15,000 |
| Current Average APR (%) | 18% |
| Consolidation Loan APR (%) | 7% |
| Loan Term (Years) | 5 years |
For those figures the calculator returns:
- Current cost: £22,854.08
- New cost: £17,821.08
- Saving: £5,033.01
Method & assumptions
This calculator compares your current monthly payments and total interest costs across multiple debts against a single consolidation loan. Enter each existing debt with its balance, interest rate, and monthly payment, then input the terms of a proposed consolidation loan to see whether consolidating would save you money overall.
The model assumes all rates remain fixed and that you make minimum or stated payments on existing debts. It does not account for early repayment charges on existing agreements, arrangement fees on the new loan, or changes in your credit profile. UK consumers should also note that secured consolidation loans (against property) carry additional risk not reflected in this interest comparison. This tool provides an estimate for planning purposes and does not constitute regulated financial advice.
Common mistakes
- Judging an offer by the monthly payment alone and ignoring total interest.
- Using a representative APR as if it were a guaranteed personal rate.
- Forgetting arrangement fees or early-settlement terms.
- Comparing two loans that do not use the same amount and term.
What to do next
- Compare offers using the same amount and term, then check total repayable.
- Add fees and read early-settlement terms before treating the estimate as the full cost.
- Test a shorter term to see whether a higher payment is worth the interest saved.
- If several debts are involved, use a consolidation or payoff planner next.