Business Debt Consolidation Calculator
Compare your current debt stack against one consolidated loan — see both the interest saved AND how the payoff date moves, not just one or the other.
Written by Dorothy Ibrahim, 10+ years in banking & finance
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How we calculate this
This calculator compares your current stack of business debts against one consolidated loan and shows both numbers that matter: the change in your monthly payment and the change in total interest until payoff. Most comparisons show only one, which hides the classic trap — a lower payment that quietly costs more because the payoff stretches years further. It also flags the urgent case: any debt whose payment does not even cover its monthly interest.
The formulas
- Months to pay off each debt
- −ln(1 − monthly rate × balance ÷ payment) ÷ ln(1 + monthly rate)If the payment is at or below the monthly interest (payment ≤ balance × monthly rate), the balance never shrinks — the tool flags this instead of computing.
- Remaining interest per debt
- monthly payment × months to payoff − balance
- Balance-weighted average rate
- sum of (balance × rate) across all debts ÷ total balance
- Consolidated loan
- (total balance + offer fees) amortized at the offer rate over the offer termFees are rolled into the financed balance and counted in the consolidated cost.
- The two deltas
- payment change = consolidated payment − current combined payment; interest change = consolidated interest + fees − current remaining interest
Worked example
- Say you carry two debts: a $30,000 credit line at 18% ($900/month) and a $20,000 equipment loan at 12% ($600/month) — $50,000 total, $1,500/month, at a balance-weighted average rate of 15.6%.
- On their current trajectories those debts cost $16,349.32 more in interest, with the last one paid off in about 47 months.
- A consolidation offer of 11% over 60 months with no fees produces one payment of $1,087.12 and total interest of $15,227.27.
- Payment change: $412.88/month lower. Interest change: $1,122.05 less overall.
- Both numbers improved, so the verdict is good — note that the win is modest because the 60-month term is 13 months longer than the current payoff; a cheaper rate had to first pay for the longer stretch.
Rates, benchmarks & sources
- Payoff months, remaining interest, and the consolidated schedule are computed from the balances, rates, and payments you enter — no benchmark rates are assumed. — Standard amortization and payoff math (no external constants)
Figures current as of 2026-07-02. See our methodology & editorial standards for how constants are versioned and verified.
What this tool doesn’t model
- This is a comparison of the numbers you type in, not an offer — whether you qualify for the consolidation rate, and at what fees, depends entirely on lender underwriting.
- Assumes your current payments stay level until each debt is paid; revolving debts you keep charging on, variable rates, and payment changes will move the real trajectory.
- Prepayment penalties on existing debts, and any collateral changes (an unsecured stack consolidated into a lien on your assets, or a personal guarantee), are not modeled — read those terms before comparing on price alone.
- A consolidated payoff equal to the offer term assumes you never prepay; paying the freed-up cash toward the new loan changes the picture substantially.
Frequently asked questions
My payment would drop a lot — why does the tool say caution?
Because a lower payment usually comes from a longer term, and a longer term means more months of interest. The tool computes both deltas so you can see the trade explicitly: when the payment falls but total interest rises, it warns you with the exact dollar amounts. That deal can still be rational if cash flow is the binding problem — but you should choose it knowing the price.
What does "payment doesn't cover interest" mean?
If a debt's monthly payment is less than or equal to one month of interest on its balance, the balance never shrinks — it grows forever. Mathematically there is no payoff date, so the tool cannot compute remaining interest and instead raises an urgent flag. Consolidating that debt into a fully amortizing loan, where every payment retires some principal, stops the hole from deepening.
How do I know if an offer rate is actually good for my situation?
Compare it to your balance-weighted average rate, which the tool computes — 15.6% in the worked example. An offer below that average is working in your favor; an offer above it costs more unless it fixes a genuine cash-flow emergency, and the tool says so explicitly. Weighting by balance matters because a low rate on your biggest debt counts far more than a high rate on a small one.
Should I include every business debt in a consolidation?
Not automatically. Debts that are cheap, nearly paid off, or tied to useful collateral terms are often better left alone — the caution example shows how folding a low-rate, fast-payoff debt into a long consolidation raises its total cost. Run the tool with different subsets of your debts: consolidate the expensive ones, keep the cheap ones, and compare the deltas each way.
Do the offer fees really matter if they are only a few percent?
They compound quietly: fees are added to the financed balance, so you pay interest on them for the full term on top of the fee itself. The tool rolls them into the consolidated cost so the interest-change number is honest. On a close comparison — like the worked example's $1,122 advantage — a $2,000 origination fee is enough to flip the verdict entirely.
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themoneysheet provides educational estimates, not financial, tax, or legal advice. Figures use published rates and formulas current as of the date shown, but your situation may differ. Consult a qualified professional (CPA, attorney, or licensed advisor) before making financial decisions. Rates shown are estimates; actual offers depend on lender underwriting.