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Debt Consolidation Calculator India: EMI & Savings

Would replacing your current debts with one loan actually save money?

Compare multiple existing debts with one proposed consolidation loan after interest, processing-fee GST, closure charges and other costs.

True-cost comparison
Enter your numbers
Live result Calculating…

Current debts

Debt 1 — credit card

₹
1000100000000
% p.a.
072
₹
1005000000

Debt 2 — personal loan

₹
1000100000000
% p.a.
072
₹
1005000000

Debt 3 — consumer loan

₹
1000100000000
% p.a.
072
₹
1005000000

Proposed consolidation loan

% p.a.
048
years
0.515
%
010

One-time costs

%
040
₹
010000000
₹
010000000
Your estimate

Estimated net savings after costs

—
Live result

How it works

A useful estimate, with the assumptions out in the open.

Each debt and the consolidation loan use monthly reducing-balance interest at the entered annual rate divided by 12. Current monthly payments and the new EMI remain fixed until their final smaller payment. Processing-fee GST and all other entered costs are paid upfront and are not added to the new principal. Rate changes, missed payments, new borrowing, rebates and unentered lender charges are excluded.

This result is an educational estimate. Rates, taxes, fees, product rules, and market returns can change.

India-focused guide

Will taking one personal loan to clear my credit cards and other debts reduce my EMI and total cost?

Enter two to four current balances, annual rates and monthly payments, then enter the proposed consolidation-loan rate, tenure and fees. The calculator projects both paths, compares EMI, interest, payoff time and true total cost, and identifies a stable break-even month only when refinancing remains ahead through the end.

What this estimate uses

Number of current debts, Debt 1 outstanding balance, Debt 1 annual interest rate, Debt 1 current monthly payment, Debt 2 outstanding balance, Debt 2 annual interest rate, Debt 2 current EMI, Debt 3 outstanding balance, Debt 3 annual interest rate, Debt 3 current EMI, Debt 4 outstanding balance, Debt 4 annual interest rate, Debt 4 current EMI, Proposed consolidation-loan rate, Proposed loan tenure, Processing fee on new loan, GST rate on processing fee, Total closure or foreclosure charges, Insurance, documentation and other costs.

Important assumption

Each debt and the consolidation loan use monthly reducing-balance interest at the entered annual rate divided by 12. Current monthly payments and the new EMI remain fixed until their final smaller payment. Processing-fee GST and all other entered costs are paid upfront and are not added to the new principal. Rate changes, missed payments, new borrowing, rebates and unentered lender charges are excluded.

Created and maintained byAll Tool Central
Formula and content reviewed19 October 2026
See how estimates are builtCalculation methodology

Detailed guide

Understand the result before using it.

Debt consolidation replaces several current balances with one new loan. A useful comparison must test the remaining cash cost of both paths—not just whether the proposed EMI is lower—and must include processing-fee GST, closure charges and other switching costs.

01

How the true-cost comparison works

Each current debt is projected separately using its outstanding balance, annual rate and fixed monthly payment. The proposed consolidation loan starts with the combined balances and uses the entered rate and tenure to calculate a reducing-balance EMI.

The calculator adds the processing fee, GST on that fee, closure charges and other entered upfront costs to the new-loan path. Positive net savings means the current debts require more remaining cash than the consolidation loan after all entered costs.

FormulaNet savings = current remaining payments − (new-loan payments + processing fee + fee GST + closure charges + other costs)

02

Example: consolidating three debts totalling ₹5 lakh

The default example combines a ₹1.20 lakh card at 36%, a ₹3 lakh personal loan at 14% and an ₹80,000 consumer loan at 18%. Their current payments total ₹17,000 a month. The proposed three-year loan charges 13%, plus a 1.5% processing fee and 18% GST on that fee.

Illustrative consolidation comparison with no closure or other costs
PathStarting monthly paymentDebt-free timeInterestRemaining cash cost
Keep current debts ₹17,000 4 years 2 months ₹1,85,771 ₹6.86 lakh
Consolidate at 13% ₹16,847 3 years ₹1,06,491 ₹6.15 lakh incl. ₹8,850 fees
Difference ₹153 lower 14 months sooner ₹79,280 less ₹70,430 saved
03

Why a lower EMI can still cost more

A lender can reduce EMI by extending the repayment period. That may help monthly cash flow while increasing total interest and keeping the borrower in debt longer. The result therefore reports both payoff dates and warns when cash-flow relief does not produce total savings.

Break-even is labelled stable only from the first month when cumulative consolidation cost remains no higher through the end of both paths. This avoids claiming an early temporary crossover that reverses during a longer new tenure.

04

Use the lender’s KFS and closure quote

RBI’s Key Facts Statement framework requires the loan’s annual percentage rate, amortisation schedule and applicable charges to be disclosed in a standardised form. Compare the KFS rather than relying only on an advertised interest rate or EMI.

Foreclosure eligibility and charges can depend on lender type, rate type, purpose, sanction date and contract. Obtain a dated closure amount for every current account and enter the total rather than assuming it is zero.

  • Use outstanding closure balances, not original sanctioned amounts.
  • Enter annual rates consistently and confirm whether each current payment is fixed.
  • Include processing fee, GST, insurance, documentation and every quoted closure cost.
  • Check whether the proposed loan proceeds fully cover both balances and costs.
  • Avoid creating new card balances after the old accounts are cleared.
  • Treat the lender’s KFS, sanction letter and amortisation schedule as the contractual calculation.

Common questions

Frequently asked questions

Does debt consolidation always save interest?

No. Savings depend on the proposed rate, tenure and every switching cost. A longer tenure can reduce EMI while increasing total interest.

Can I use a personal loan to clear credit-card debt?

The calculator can compare those cash flows, but approval and suitability depend on the offered KFS, repayment capacity and whether new card spending stops. It does not recommend taking a new loan.

Why is the break-even month later than the new loan payoff date?

Upfront fees make consolidation start behind. In some cases the current debts continue generating payments after the new loan ends, so cumulative consolidation savings become positive only later.

Should processing fees be added to the new loan balance?

This calculator treats entered fees and costs as paid upfront. If a lender finances or deducts them differently, use its KFS and repayment schedule because both EMI and net disbursal may change.

Does this calculator include changing or floating rates?

No. Every entered rate remains fixed for the projection. Recalculate when a lender changes a rate, EMI or remaining tenure.

Continue planning

Compare the next part of the decision.

Debt Snowball vs Avalanche CalculatorCompare snowball, avalanche and minimum-only repayment across multiple debts using one fixed monthly budget. Personal Loan CalculatorEstimate personal-loan EMI, interest, fees, and net disbursal. Credit Card Payoff CalculatorSee how long a balance may take to clear and how much interest it can cost.

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