OweClear Logo

Debt Consolidation Calculator

Compare your current debts to a single consolidation loan to see if it makes financial sense to consolidate. Find out if you will save on interest and lower your monthly payment.

1. Current Debts

Add all the debts you want to consolidate.

2. Consolidation Loan Terms

Enter the details of the new loan you are considering.

This fee is added to your new loan balance.

Enter your debts and the new loan details.

We'll show you a side-by-side comparison to help you decide if consolidating makes sense.

How to Use the Debt Consolidation Calculator

The Debt Consolidation Calculator helps you determine whether it makes financial sense to combine multiple debts (like credit cards and personal loans) into a single new loan. Sometimes a consolidation loan lowers your monthly payment but ends up costing you more in interest over time. This tool calculates the true mathematical outcome.

Understanding the Input Options

To compare your current debts against a new loan, you need to provide details for both:

  • Current Debts: Add all the debts you want to consolidate. For each debt, enter the current balance, the interest rate (APR), and the monthly payment you are currently making.
  • Consolidation Loan - Origination Fee: Many lenders charge a fee to process a new loan, usually between 1% and 8% of the loan amount. This fee is added to your new loan balance.
  • Consolidation Loan - Interest Rate: The new APR offered by the consolidation lender.
  • Consolidation Loan - Term (Years): How long you will take to pay off the new loan. Extending the term lowers your monthly payment but increases the total interest paid.

Is Consolidation Always a Good Idea?

Not always! A consolidation loan is a "Good Idea" if the total interest you pay on the new loan (plus the origination fee) is less than the total interest you would have paid on your current debts. If you stretch a 2-year debt into a 5-year consolidation loan, you might lower your monthly payment, but you could end up paying thousands more in interest. Our calculator immediately alerts you if a consolidation loan is actually costing you more!

Frequently Asked Questions

Frequently Asked Questions

Applying for a new loan causes a temporary hard inquiry, which might slightly lower your score for a few months. However, paying off maxed-out credit cards with a personal loan usually improves your credit utilization ratio, which can significantly boost your score long-term.
Generally, no. Closing credit cards reduces your total available credit and shortens your average account age, both of which can negatively impact your credit score. Cut the cards up if you are tempted to use them, but keep the accounts open.
Many lenders charge a processing fee to create the loan, usually ranging from 1% to 8% of the loan amount. This fee is often rolled into the loan balance. Our calculator accounts for this fee to show you the true cost of consolidation.