A debt consolidation calculator is a financial tool used to help individuals determine whether consolidating their debts into a single loan is a viable option for them. Debt consolidation involves taking out a new loan to pay off multiple existing debts, such as credit card balances or other loans.

A debt consolidation calculator takes into account the total amount of debt owed, the interest rates on each debt, and the term of the new consolidation loan to provide an estimate of the monthly payment and total cost of the consolidation loan.

Using a debt consolidation calculator can help individuals determine whether consolidating their debts will result in a lower overall interest rate and a lower monthly payment. By comparing the total cost of the consolidation loan to the total cost of paying off the existing debts separately, individuals can determine whether consolidating their debts is a financially advantageous option.

In addition to providing estimates for the monthly payment and total cost of the consolidation loan, some debt consolidation calculators may also provide information on how long it will take to pay off the consolidation loan and how much interest will be saved compared to the existing debts.

Overall, a debt consolidation calculator is a useful financial tool for anyone considering consolidating their debts. By using a calculator, individuals can determine whether consolidating their debts will result in lower overall costs and make informed decisions about their debt management options.