§ Calculator · Debt
Consolidate + invest the difference
What this is
Consolidate high-rate debt, invest the monthly savings, watch it compound.
If consolidation drops your monthly debt payment from $900 to $400, the $500 savings invested at 7% over 4 years is ~$28k. Combines the debt benefit (lower interest) with the investment benefit (compound returns).
New consol payment
$373
Monthly savings
$527
Consol interest
$2,914
Investing the savings → FV
$29,084
Only works if you invest the savings. If you redirect them to lifestyle, you’re just trading debt cost for spending. Set up auto-deposit to a TFSA before doing this.
Disclaimer
Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.