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UK · 2025/26

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 · UKCredit & 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.

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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.
  • When you want to sanity-check a figure you have seen elsewhere before you rely on it.
  • When you are preparing for a conversation with an adviser, supplier, or lender and want to arrive with realistic numbers.

A realistic UK planning example

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

Total Debt (£)

15000

Current Average APR (%)

5%

Consolidation Loan APR (%)

£200,000

Loan Term (Years)

£200,000

After entering these figures, review current cost, new cost and saving together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.

How to read your results

Current Cost

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

New Cost

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Saving

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Method & assumptionsAuthoritative sources

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

  • !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.
  • !Rounding inputs too aggressively, which can produce an output that is noticeably different from your actual situation.
  • !Stopping at a single run of the tool rather than adjusting the key variable up and down to understand the range of plausible outcomes.

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.
  • Write down the key outputs from your best two or three scenarios so you have something concrete to compare when you make the final decision.
  • If the result surprises you, change one input at a time to isolate which variable is driving the outcome before drawing conclusions.

Frequently asked

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

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