Comparing with your current debts
Consolidating saves money only if the new loan's rate, including fees, is lower than the rates on your current debts and you don't extend the term too far.
The calculator finds the monthly rate at which your payments exactly repay the money you actually receive, then turns it into an annual rate including the effect of compounding: APR = (1 + monthly rate)^12 − 1. Fees paid upfront reduce the money you receive, so they push the APR up.
Worked example
A £15,000 loan repaid at £311.38 a month for 5 years, with a £300 fee, has an APR of 10.3%, compared with an interest rate of 9% before the fee.
Before you consolidate
Free debt advice is available through MoneyHelper.
Inputs for the calculate consolidated loan interest rate
Amount borrowed
The amount of the loan.
Upfront fees
Any arrangement or other fees you pay at the start, or that are taken from the loan. Enter 0 if there are none.
Monthly payment
Your regular monthly repayment from the quote or agreement.
Term
How many years the payments last.
CALCULATOR QUESTIONS
Consolidated loan interest rate calculator questions
How do I know if consolidating saves money?
Compare the new loan's APR and total cost with your current debts.
Do fees matter?
Yes. In the example, a £300 fee lifts the APR above 10%.
What's the difference between APR and the interest rate?
The interest rate is what's charged on the balance. The APR also includes compulsory fees and the effect of compounding, so it's the better figure for comparing deals.
Where can I get free help?
MoneyHelper can point you to free debt advice.