Debt Consolidation Calculator Explained for Australians
Compares your current debts with a single consolidation loan. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Debt Consolidation Calculator.
Why it matters
Personal credit in Australia covers car loans, personal loans, credit cards and buy now pay later. Lenders must quote a comparison rate alongside the headline rate, which bundles most fees into a single figure for a standard loan size.
What you need to enter
The calculator asks for 5 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Total debts ($) | 20000 |
| Average current rate (%) | 18 |
| Consolidation loan rate (%) | 10 |
| Loan term (years) | 3 |
| Loan fees ($) | 500 |
The formula
Both options are repaid over the same term. Fees are added to the new loan.
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| Total saving | $2,216.54 |
| Repayment now (same term) | $723.05 |
| Consolidated repayment | $661.48 |
The headline figure is $2,216.54 (total saving). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the total saving changes with total debts
The table below keeps every other input at the example value and moves only “Total debts ($)” up and down by 10% and 20%. It shows how sensitive the total saving is to that one figure.
| Total debts ($) | Total saving |
|---|---|
| 16,000 | $1,657.07 |
| 18,000 | $1,936.81 |
| 20,000 | $2,216.54 |
| 22,000 | $2,496.28 |
| 24,000 | $2,776.01 |
At 16,000 the result is $1,657.07; at 24,000 it is $2,776.01. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
Consolidating into a longer term can lower repayments but raise total interest. Keep the term the same or shorter.
Keep going
Before relying on the number, read Debt Consolidation Mistakes Australians Make and How to Avoid Them. You might also find these guides useful:
- How the Loan Comparison Calculator Works (With a Worked Example)
- Loan Payoff Time Calculator: Formula, Example and What the Result Means
- Using a Credit Card Minimum Repayment Calculator in Australia: A Step-by-Step Guide
Frequently asked questions
- What is a comparison rate?
- It combines the interest rate and most fees into one annual rate, usually based on a $30,000 loan over five years, to make loans easier to compare.
- Do the results include fees?
- Only where a fee input is shown. Add any known fees for a more realistic total.
- Where can I get help with debt?
- The National Debt Helpline (1800 007 007) offers free, confidential financial counselling.
Run your own numbers in the Debt Consolidation Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.