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Debt Consolidation Calculator

Compare your current multiple debts with a single consolidated loan. See how much you can save by consolidating at a lower interest rate.

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🇩🇰 All calculations are based on Danish rules, rates, and currency (DKK). This calculator is translated for convenience but applies exclusively to Denmark.

Debt Consolidation Calculator for Denmark

If you have multiple debts with different interest rates, consolidating them into a single loan at a lower rate can save you money and simplify your finances. This calculator compares the total cost of keeping your current debts separate versus combining them into one consolidated loan. Enter each debt amount and interest rate, along with the new consolidated loan terms, to see the potential savings.

How Debt Consolidation Works

Debt consolidation means taking out a new loan to pay off multiple existing debts. The goal is to get a lower overall interest rate, reduce your monthly payments, or both. In Denmark, several banks offer dedicated consolidation loans (samlelån), and the interest rate depends on your credit profile, the loan amount and whether you can offer any collateral. The key is that the new rate must be significantly lower than the weighted average of your current rates for consolidation to make financial sense.

Is Consolidation Right for You?

Consolidation is most beneficial when you have high-interest consumer debts such as credit cards or quick loans. However, watch out for fees — establishment fees, early repayment penalties on existing loans, and administration charges can reduce or eliminate the savings. This calculator focuses on the interest comparison, so be sure to factor in any additional fees when making your decision.

Frequently Asked Questions

Is it worth consolidating your loans?

By consolidating your loans in one place, you pay fewer fees and can pay off small loans with expensive interest rates. This frees up money that gives you more breathing room in your daily finances — or lets you pay more toward your debt, so you become debt-free faster.

Who offers consolidation loans in Denmark?

Several Danish banks and lenders offer consolidation loans, including Santander, Lendo and GoLoan. The interest rate depends on your credit score, the loan amount and whether you can offer collateral. It is important to compare ÅOP (APR) from multiple providers, as fees and terms vary significantly.

How do you calculate the weighted average interest rate?

The weighted average interest rate is calculated by multiplying each debt amount by its interest rate, adding all the products together, and dividing by the total debt. For example: if you have 50,000 kr at 15% and 30,000 kr at 10%, the weighted rate is (50,000 × 15 + 30,000 × 10) / 80,000 = 13.13%. This calculator performs this calculation automatically.

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