Refinance & Debt Consolidation Calculator
Rolling several debts into one new loan (a refinance or "compra de cartera")? Compare keeping your debts exactly as they are against one consolidated loan with a new rate and term, and see whether it actually saves you money.
Your Current Debts
Pays off in 34 mo on its own
Pays off in 36 mo on its own
New Consolidated Loan
The terms your bank is offering to refinance everything into one loan.
Added to the new loan amount.
Keep current debts
- Monthly payment
- $570
- Time to debt-free
- 36 mo
- Total interest & fees
- $4,611
- Total you still pay
- $19,611
Refinance into one loan
- Monthly payment
- $410
- Time to debt-free
- 48 mo
- Total interest & fees
- $4,675
- Total you still pay
- $19,675
Total cost compared
Refinancing lowers your monthly payment, but you pay more in total because the term is longer. Useful for cash-flow relief, costly in the long run.
Estimates for education only. Current debts are assumed to keep their fixed payment until paid off; the new loan uses standard monthly amortization. Confirm exact terms with your lender.
Related guides
Methodology
How this calculator works
Built by Andrés Soler · Updated
Formula
- New loan amount = sum of current balances + closing / origination fee
- Payment = L × i × (1 + i)^n ÷ ((1 + i)^n − 1), where L is the amount borrowed, i the monthly rate (annual rate ÷ 12) and n the number of months
- Current debts: payoff time for each debt from its own payment; with the snowball option, freed-up payments roll to the smallest remaining balance.
Assumptions & limits
- All rates are fixed.
- Fees are financed into the new loan, not paid upfront.
- Prepayment penalties on the old debts and changes to your credit score are not modeled.
- Rate basis: an effective annual rate (E.A.) is converted to its monthly equivalent, (1 + E.A.)^(1/12) − 1; a nominal APR is divided by 12. E.A. is the default in Spanish (Colombian convention), APR in English (U.S. convention). The same basis applies to every rate in the comparison.
Educational estimates, not financial advice. Check important decisions with your lender or a licensed advisor.
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