Business Debt Consolidation Calculator: Try Our Free, Easy Tool

Enter the following details for each small-business loan, line of credit or business credit card you’re trying to consolidate:

• Balance. Enter the amount you currently owe.

• Interest rate. Enter the annual interest rate your lender charges you.

• Monthly payment. Enter the amount you pay your lender each month for the debt.

After hitting “Calculate,” you’ll see the following details:

• Total balance. The sum of all debt balances you currently owe.

• Total monthly payment. The total amount you pay each month across all your business debt, including interest.

• Combined interest rate. The weighted average interest rate across all your business debt.

• Debt-free timeline. The number of years required to fully repay your debt based on your current balance and monthly payments.

Here’s where you’ll enter your debt consolidation loan details. You can enter details for an actual loan offer you received or play around with the sliders to see how different interest rates and repayment terms impact savings.

• Interest rate. Select the annual interest rate for the debt consolidation loan.

• Loan term. Select the number of years it’ll take to repay your debt consolidation loan.

• Total fees paid. Enter the total upfront costs of your debt consolidation loan, along with any prepayment penalties from the loans you’re consolidating.

Your final results will give you insights into the following:

• Current debts. Your total monthly payments across all existing business debt, including the overall cost when factoring in interest.

• Debt consolidation loan. The projected monthly payment and total cost of your new consolidation loan, including interest.

• Your potential savings. The difference between your new monthly payment and total cost of consolidation compared to your previous payments across all business debt.

A business debt consolidation loan combines multiple debts across business loans, lines of credit or business credit cards into a single loan. It’s meant to simplify debt payments, which can become unwieldy if you owe multiple lenders different sums of money at different times of the month. While it can streamline payments and potentially reduce monthly costs and total expenses, savings are not guaranteed.

Not necessarily. Business debt consolidation loans are meant to make life easier by collapsing multiple loans into one.

You may find that a business debt consolidation loan lowers your overall monthly payment. This typically happens when the repayment term on the consolidation loan is longer than the remaining time left on your current debts. However, while lower monthly payments can provide short-term relief, they may lead to higher total interest costs, making the consolidation loan more expensive over time.

Play around with our business debt consolidation loan calculator to see which interest rates and payment terms yield the results you’re looking for.

While standalone debt consolidation loans exist, you can also pay off existing business debt with many standard types of small-business loans. Just make sure the lender allows using loan proceeds to pay off other debts.

Here are some loan options that could help you consolidate your debt:

• Bank loans tend to offer the best interest rates and long repayment terms, but can be hard to qualify for. However, if you have a well-established business with strong revenue, and you’ve been paying off existing loans on a timely basis, bank loans are often a good first option to explore. 

• SBA loans also come with favorable interest rates and terms, and can be used to consolidate certain business debt. Though SBA loans may be difficult for many business owners to qualify for, they are often more accessible than traditional bank loans.

• Online loans are usually the most accessible option, especially for newer businesses or borrowers with bad credit. The tradeoff is that online loans typically come with higher interest rates and shorter repayment terms compared with bank or SBA loans.