Flagstone Digital

Debt consolidation calculator: one payment vs. many

Add your debts to compare what you pay today with one home equity loan payment, including the total cost over time.

Free · No sign-up · Updated October 2026

Debt consolidation calculator

DebtBalance ($)Rate (%)Monthly payment ($)
Monthly payment change$0
Total debts consolidated
Current monthly payments
New single payment
Total left to pay today
Total paid on new loan

Models a separate home equity loan for the debts only; your first mortgage stays as is. Example rate is not a current quote.

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How debt consolidation with home equity works

You borrow against your home's equity, through a home equity loan, a HELOC or a cash-out refinance, and use the money to pay off higher-interest debts like credit cards or personal loans. Instead of several payments, you have one.

Because the new loan is secured by your home, its rate is often lower than credit card rates. That can lower your monthly payment, but it isn't the whole picture.

The two numbers that matter

  1. The monthly payment. This is what most people look at first, and consolidation often lowers it.
  2. The total cost. Stretching a short-term debt over 10, 20 or 30 years can mean paying more interest overall, even at a lower rate. The calculator shows both so you can compare.
Example$49,500 in credit card, auto and personal loan debt$1,410/mo today → about $630/mo as one 10-year loan at 8.5%Lower payment, but compare the total paid over each option

Risks to weigh

  • Your home becomes collateral for debt that wasn't secured before.
  • Running balances back up. Paying off cards only helps if new balances don't build up again.
  • Closing costs add to what you borrow.
  • Using a cash-out refinance moves your whole mortgage to a new rate. If your current rate is low, a separate home equity loan or HELOC may cost less.

Other options to compare

Depending on your situation, a 0% balance transfer card, a personal loan, or a free session with a nonprofit credit counselor may be worth comparing before you borrow against your home.

Frequently asked questions

Is it smart to use home equity to pay off debt?

It can lower your rate and monthly payment, but it secures the debt with your home and can raise the total you pay if the term is long. Compare both the monthly payment and the total cost.

Which is better for consolidating debt, a HELOC or a home equity loan?

A home equity loan gives a fixed lump sum and payment, which suits paying off a set amount of debt. A HELOC is more flexible, but rates are usually variable.

Will consolidating debt hurt my credit?

Applying usually involves a credit check. Over time, paying off revolving card balances can help credit utilization, but results vary.

How much can I consolidate?

It depends on your available equity. Use the home equity calculator to estimate how much you may be able to borrow.

About this calculator

This calculator uses standard loan formulas and the numbers you enter. It runs in your browser, doesn't check your credit and doesn't save anything unless you choose to request options. Results are estimates for education only. Lenders set their own limits, rates and fees.

For independent guidance, see the Consumer Financial Protection Bureau's homebuying resources.