What this calculator helps you do
Compare current debt payments with a proposed fixed consolidation loan. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—debt 1 balance of $5,000, debt 1 apr of 24%, debt 1 payment of $180, debt 2 balance of $8,000, debt 2 apr of 14%—the calculator returns new monthly payment of $440.04; current combined payments: $530.00; monthly payment change: $89.96. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
A lower payment is beneficial only when fees, new term, total interest, and behavior after consolidation are also acceptable.
Common mistakes to avoid
- Extending the term so far that total interest rises.
- Leaving origination fees out.
- Running card balances up again after consolidation.
Limits and assumptions
Current debt payoff estimates depend on the payment amounts entered. Variable rates and issuer minimum changes are simplified.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
Does consolidation erase debt?
No. It replaces or combines obligations; the principal still must be repaid.
Why can payment fall while cost rises?
A longer term can spread payments but add more months of interest.
Should fees be financed?
This model adds entered fees to the new loan balance.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.