myUSFinance

1. Enter your your values — Enter the relevant financial figures for your situation
2. Click Calculate — Review your results in the output section below the form. The calculator instantly computes all values based on your inputs.
3. Adjust and Compare — Modify any input to see how changes affect the result. Try different scenarios to find the optimal approach for your situation.

All calculations are performed instantly in your browser. Your data is never sent to any server or stored anywhere — your financial information remains completely private.

Where:

• P — Total principal (sum of all debts being consolidated)
• r — Monthly interest rate of the consolidation loan (annual rate ÷ 12)
• n — Number of monthly payments in the consolidation loan term

Worked Example

Consolidating $25,000 from three cards averaging 22% into a personal loan at 10% for 48 months. Old monthly payments: $850 total. New payment: $25,000 × [0.00833(1.00833)^48] / [(1.00833)^48 - 1] = $634. Monthly savings: $216. Total interest saved: ~$5,400.

Limitations and Assumptions

For debt consolidation to make financial sense, the weighted average interest rate of existing debts must exceed the consolidation loan rate. Include origination fees (typically 1-8%) in your total cost comparison. Extending the repayment term can lower monthly payments but increase total interest — use this calculator to find the optimal balance.

Understanding the following key concepts will help you interpret your results and make better financial decisions:

• Principal — The initial amount of money involved in the calculation, whether it is a starting balance, loan amount, or investment.
• Interest Rate — The percentage charged or earned on the principal amount, typically expressed as an annual rate (APR). This rate determines how quickly your money grows or how much borrowing costs.
• Compounding — The process of earning interest on previously earned interest. More frequent compounding (daily vs. monthly vs. annually) results in higher effective returns or costs.
• Time Horizon — The length of time over which the calculation applies. Longer time horizons amplify the effects of compounding and small differences in rates.
• Present Value vs. Future Value — Present value is what money is worth today; future value is what it will be worth at a specific point in the future, accounting for growth or inflation.

These concepts form the foundation of virtually all financial calculations. Understanding how they interact helps you evaluate any financial product or decision with confidence.

Let's compare debt repayment strategies with a real scenario.

Scenario: Jason has three debts and can allocate $800 per month total toward repayment:

• Credit Card A: $4,500 balance at 22.99% APR (minimum payment: $135)
• Credit Card B: $2,200 balance at 18.49% APR (minimum payment: $66)
• Personal Loan: $8,000 balance at 9.5% APR (minimum payment: $267)

Avalanche Method (highest rate first): Pay minimums on all debts, put extra $332 toward Credit Card A first. Debt-free in 26 months, total interest paid: $2,847.

Snowball Method (smallest balance first): Pay minimums on all debts, put extra $332 toward Credit Card B first. Debt-free in 27 months, total interest paid: $3,104.

The avalanche method saves Jason $257 in interest and one month. However, the snowball method eliminates his first debt in just 5 months, providing a motivational boost. Both methods are vastly superior to paying only minimums, which would take 94 months and cost $6,218 in interest.