See If Consolidation Actually Saves You Money
Juggling multiple loans, cards and ATO debts makes it hard to see what you really owe — and what it's costing you. Stack your existing debts against a single consolidated business loan to see whether rolling them into one facility will reduce your repayments, your interest, or just your stress.
Who this calculator is for
Business owners with multiple loans, credit lines or tax debts who want to understand how consolidating into one business facility could change their total repayments, interest bill and cash-flow position.
What it calculates
It sums up your existing debts and scheduled repayments, then compares them to a proposed consolidation loan — showing the new repayment, the change in monthly outgoings, the difference in total interest over time, and whether you're paying more or less overall.
Why it matters
Debt consolidation can cut complexity and smooth cash flow if you swap high-rate, short-term facilities for a sharper, better-structured loan — but stretching terms or rolling in cheap debt can also increase total interest. This tool helps you see the trade-off before you refinance.
1Your current debts
Debt 1
Debt 2
Debt 3
2Your new consolidated loan
Default: included balances ($85,000)
Comparison results
Current monthly repayments
$2,540
Across 3 facilities
monthly repayment (consolidated)
$1,869
≈ $1,869 / month
Monthly change
−$671
Less every month
Lower monthly repayments (interest comparison not estimated)
Some of your debts don't have a stated remaining term, so the total interest comparison can't be calculated. The repayment comparison above still applies.
| Metric | Current debts combined | Proposed consolidation |
|---|---|---|
| Number of facilities | 3 | 1 |
| Total balance / amount | $85,000 | $85,000 |
| Interest rate range / new rate | 11.17% – 19.99% | 11.50% |
| Average monthly repayments | $2,540 | $1,869 |
| Estimated remaining interest | Not estimated | $27,162 |
| Fees (break / upfront + ongoing) | $0 | $1,395 |
| Total cost (interest + fees) | — | $28,557 |
| Weighted avg / new term | ~34 months | 60 months |
You're extending your debt over a longer period than your existing debts. This may lower monthly repayments but increase total interest.
Some of your existing debts appear cheaper than the new rate — rolling them in could increase the cost of that portion.
Estimates use standard amortisation. Revolving debts (overdrafts, cards) without a stated remaining term contribute to repayment totals but are excluded from the interest comparison. Always confirm break fees, current balances and the actual offered rate with each lender before refinancing.
Numbers stack up? Now find a real consolidation offer.
If the numbers suggest consolidation could simplify your repayments or improve cash flow, the next step is to compare real offers and make sure the structure matches your business goals.
How this Debt Consolidation Calculator works
You list your existing business debts — their balances, interest rates, repayments and remaining terms — so the calculator can estimate your combined monthly repayments and the interest you're on track to pay. Then you enter a proposed consolidation loan (amount, rate, term and fees), and the tool uses standard amortisation formulas to work out its repayment and total interest. It compares the old and new structures side-by-side so you can see whether consolidation reduces your payments, interest, or just complexity.
PMT = [P × r × (1+r)n] / [(1+r)n – 1]
For each existing debt with a stated remaining term, the calculator approximates the remaining interest by treating your current repayment as a fixed P&I payment: total paid = repayment × months remaining, and estimated remaining interest = total paid – balance. For revolving facilities (overdrafts, credit cards) without a stated term, the repayment is included in the monthly total but the interest contribution is flagged as not estimated.
For the new consolidation loan, the standard annuity formula above gives the exact periodic repayment for the amount, rate and term you enter. Total interest is the sum of repayments minus the loan amount; total cost adds upfront and ongoing fees. The comparison metrics — monthly change, interest delta and verdict — fall out of those two calculations.
How to interpret your results
- Lower monthly repayments and lower total interest. Usually a win — a sharper rate and/or smarter term structure are giving you both better cash flow and lower long-run cost. Double-check all fees and assumptions before signing.
- Lower monthly repayments, but higher total interest. You're trading long-term cost for short-term breathing room. Sensible if cash flow is genuinely tight, but you should be comfortable with the extra interest paid over time.
- Higher monthly repayments, lower total interest. A faster, cheaper payoff. Worth doing if your business can comfortably absorb the higher monthly figure — run the Business Loan Stress-Test to confirm.
- Little change or worse on both fronts. If consolidation doesn't improve repayments or interest, its main benefit is simplification. Decide whether that alone justifies the effort and any extra cost.
- Treat the estimate as directional for revolving debt. Overdrafts, credit cards and any line you've left at term = 0 contribute to monthly repayments but are excluded from the total-interest comparison. The headline number understates current cost when revolving debt is significant.
How to find a consolidation that fits your business
- Start with your current total monthly repayments from the calculator — that's your baseline.
- Adjust the new term and rate until the new repayment sits inside a comfortable share of your monthly free cash flow, without extending the term so far that total interest balloons.
- If affordability requires a very long term, consider a partial consolidation instead — roll up only the most expensive debts and leave cheaper ones in place. The 'Include' checkboxes are built for exactly this.
- Combine with cost reductions where possible. Consolidation works best alongside operational tightening — it isn't a substitute for fixing the underlying cash flow.
- Feed your preferred new repayment into the Business Loan Stress-Test to see how it interacts with seasonality, tax obligations and reinvestment needs before you commit.
Calculator assumptions
This calculator produces estimates based on the standard annuity amortisation formula and assumes a constant interest rate across the full loan term. Remaining interest on existing debts is approximated from the repayment and remaining term you enter — it is not a precise figure for facilities with variable rates, irregular repayments or revolving structures. Establishment fees, ongoing fees, payout fees and break costs are included only when you enter them. Lender-specific calculation conventions (rounding, day-count basis, deferred fees) may produce minor differences from real offers. The rate and term you enter are the most influential inputs — and the least certain — so the most useful way to use this tool is to test multiple scenarios. This calculator does not constitute financial, tax or credit advice. Reviewed by the LoanGorilla editorial team — last updated May 2026.