Every consolidation offer sounds good when someone explains it on the phone. One EMI, lower rate, less stress. Who would say no.
The question nobody asks on that call is the only one that matters: over the whole period, will I pay less money than I would have anyway?
Sometimes the answer is a clear yes, especially when credit cards are involved. Sometimes it is no, because the new loan runs much longer than what was left on your old ones. This calculator tells you which situation you are in, in rupees.
What Does This Calculator Show?
It compares the total interest you would pay if you kept your current loans and cards running as they are, against the total interest on one new consolidation loan covering the same amount. The difference between the two is your real saving — or your real extra cost.
It also adds the processing fee plus GST to the new loan, because that fee is a genuine cost that most comparisons quietly leave out.
Debt Consolidation Savings Calculator
Add each debt on its own row. Then set the terms you have been offered on the new loan.
Would consolidating actually save you money?
Enter what you owe on each debt, its annual rate, and the EMI or monthly payment you make now.
| Debt | Balance (₹) | Rate (% p.a.) | Current EMI (₹) |
|---|---|---|---|
| Personal loan | |||
| Credit card 1 | |||
| Credit card 2 | |||
| Other loan | |||
| Other loan 2 |
Difference in total interest, after fees
Indicative only. Assumes your current payments continue unchanged until each debt clears, and that you do not use the cards again. Nothing you type is saved or sent anywhere.
How to Read the Result
The blended rate
This is the average interest rate across all your debts, weighted by how much you owe on each. It is the single most useful number on this page.
Why? Because it tells you instantly whether a consolidation offer is worth taking. If your blended rate is 26% and the offer is 14%, that is a real improvement. If your blended rate is 15% and the offer is 14.5%, there is very little in it.
The saving figure
Green means the new loan costs less in total interest, after the fee. Red means it costs more.
Red does not automatically mean no. Read on.
When "costs more" can still be the right choice
If the new loan runs longer than your old debts had left, you will usually pay more total interest. That is simple arithmetic, not a trick.
But if your current EMIs are choking you every month, and consolidating gives you ₹8,000 of breathing room, that may be worth paying for. Just make the decision with the number in front of you rather than without it.
🧠 Expert Insight
Try this. Keep the rate the same and reduce the tenure step by step. Watch the point where the saving turns from red to green. That month figure is the longest tenure at which consolidating genuinely saves you money. It is a far more useful thing to negotiate on than the interest rate.
Why the Processing Fee Matters
The fee is charged on the loan amount and it is deducted from what you receive. At 2% plus GST on a ₹5,00,000 loan, that is around ₹11,800 — so about ₹4,88,200 actually reaches you.
Two consequences people miss:
- You may need to borrow slightly more than your debts total, so that the amount landing in your account covers them fully.
- A lower rate with a high fee can lose to a higher rate with a small fee, especially on shorter tenures. The calculator above includes the fee so you can see this happen.
💡 Did You Know?
Credit card interest is where nearly all the saving in consolidation comes from. Cards annualise to roughly 36% to 42%. A consolidation loan at 14% costs about a third of that. If your debts are all personal loans already at 13% to 15%, the saving from consolidating will be small — the real gain there is one due date instead of four.
A Real Example
Anjali is a marketing manager in Hyderabad. She had four debts:
- Personal loan: ₹2,50,000 at 15%, EMI ₹8,500
- Credit card 1: ₹1,20,000 at about 40%, paying ₹6,500
- Credit card 2: ₹70,000 at about 38%, paying ₹4,000
- Consumer loan: ₹60,000 at 20%, EMI ₹3,000
Total owed ₹5,00,000, total monthly outgo ₹22,000. Her blended rate worked out to roughly 25%, which surprised her — she thought of herself as having "a personal loan and some card balance", not as someone paying a quarter in interest.
She was offered ₹5,00,000 at 14% for 48 months, with a 2% fee. The calculator showed the new EMI at about ₹13,650 and a clear saving on total interest even after the fee.
The two cards were doing all the damage. Between them they carried under 40% of what she owed but were generating most of her interest cost.
(This example is for explanation only. Put your own numbers in above — the answer depends entirely on your mix of rates.)
When Consolidating Is Clearly Worth It
Strong case if:
- Your blended rate is well above what you are being offered
- A big share of your debt sits on credit cards
- Some of your payments barely cover their own interest
- You have several due dates scattered across the month
- The new tenure is similar to what your old debts had left
Weak case if:
- Your existing loans are already at low rates
- You only have one or two debts, both nearly finished
- The offered tenure is far longer than what remains
- The processing fee eats most of the saving
- The spending pattern that created the debt has not changed
That last point deserves emphasis. Consolidation does not reduce what you owe. It only reorganises it. If the cards get used again after being cleared, you end up with the loan and the cards, which is worse than where you started.
Before You Accept an Offer
- Work out your blended rate using the calculator. Compare it to the offer, not to any single loan's rate.
- Ask for the processing fee in writing. Then put it in the calculator.
- Ask about the foreclosure charge on the new loan, usually 2% to 5% after a lock-in.
- Check the tenure honestly. Longer feels easier and costs more.
- Confirm every debt will actually be closed, not just some of them.
- Get the Key Fact Statement. Every charge has to be listed there.
- Decide what happens to the cards before the money arrives, not after.
Other Calculators That Help Here
Questions this page gets asked
What is a blended interest rate?
It is the average rate across all your debts, weighted by how much you owe on each. A ₹2 lakh loan at 15% and a ₹1 lakh card at 40% blend to about 23%. It is the number you should compare any consolidation offer against.
Why does the calculator sometimes show extra cost instead of saving?
Usually because the new tenure is longer than what your current debts had left. A lower rate over more months can still total more interest. Reduce the tenure and watch the figure change.
Should I still consolidate if it shows extra cost?
Possibly. If your current EMIs are unmanageable, buying breathing room has real value. The point of the calculator is to make sure you know what that room costs rather than assuming it is free.
Is the processing fee included?
Yes, along with 18% GST on it. That is deliberate — the fee is a genuine cost and leaving it out makes consolidation look better than it is.
What if I do not know my exact card interest rate?
Check your statement. It is usually shown as a monthly rate such as 3.4%. Multiply by 12. Most Indian cards land between 36% and 42% a year.
Does consolidating reduce the amount I owe?
No. It restructures the same debt into one loan at one rate. The saving comes from paying a lower interest rate, not from any part of the principal being written off.
Why does it say "never clears" for one of my debts?
Because the payment you entered is less than the monthly interest on that balance. The debt grows every month. When this happens, consolidating is almost always the right move.
Should I include my home loan?
No. Home loans are long-term, low-rate and often tax-advantaged. Consolidating one into an unsecured loan would almost certainly cost you more.
Does the calculator include foreclosure charges on my old loans?
No. Some lenders charge 2% to 5% to close a loan early. Ask each existing lender, and treat that as an extra cost against the saving shown.
How accurate are these figures?
The maths is standard reducing-balance amortisation, the same method lenders use. The accuracy depends on your inputs. Use figures from your actual statements rather than estimates.
Is my data stored?
No. Everything runs in your own browser. Nothing is sent anywhere or saved.
Will consolidating hurt my credit score?
There is a small dip at first from the new enquiry and the new account. After that it usually improves, because your credit card utilisation drops sharply and you have one account being paid on time.
Can I consolidate only some of my debts?
Yes. Leave out debts that are already at low rates — a car loan at 9%, for instance. Just enter only the ones you plan to include, so the comparison is like for like.
What if the new loan does not cover all my debts?
Then you keep a leftover balance alongside the new EMI, which defeats much of the purpose. Ask for slightly more than your debts total, so the fee deduction still leaves enough to clear everything.
In Short
Consolidation is not automatically good or bad. It depends on two numbers: your blended rate now, and the tenure you are offered.
If your blended rate is high because of credit cards, consolidating usually saves real money. If your debts are already at reasonable rates and the offer stretches you over six years, you are buying monthly comfort with future interest. Both can be reasonable choices. Only one of them is a mistake, and that is making the choice without checking.
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Calculator Disclaimer
This tool gives indicative estimates for general information, not financial advice. It does not include foreclosure charges on your existing loans, late fees, insurance or other charges. Actual rates and fees are decided by the lender after their own credit assessment. Please read your sanction letter and Key Fact Statement before signing anything.
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Responsible borrowing note
All rates, fees and eligibility figures on this page are indicative market ranges for illustration and are not an offer. Approval, pricing and the sanctioned amount rest entirely with the bank or NBFC. Money Bharti is a loan marketplace, not a lender. Assess your repayment capacity honestly and read the sanction letter in full before signing. This content is general information, not financial advice.