📊 Blended Rate Calculator
Calculate weighted average interest rate
Loan 1
Loan 2
How to Use This Calculator
Enter Loan 1 Details
Input the amount and interest rate for the first loan or debt. This calculator can handle multiple loans to find the blended rate.
Enter Loan 2 Details
Input the amount and interest rate for the second loan or debt. You can leave one loan at zero if you only have one loan.
Calculate Blended Rate
Click calculate to see the weighted average (blended) interest rate. This represents the effective interest rate across all your loans combined.
Formula
Blended Rate = [(Loan1 × Rate1) + (Loan2 × Rate2)] / (Loan1 + Loan2)
Where:
• Loan1, Loan2 = Amounts of each loan
• Rate1, Rate2 = Interest rates (as decimals) for each loan
• Result is the weighted average interest rate
Example Calculation:
If Loan 1 is $100,000 at 5%, Loan 2 is $50,000 at 7%:
• Total = $100,000 + $50,000 = $150,000
• Blended Rate = [($100,000 × 0.05) + ($50,000 × 0.07)] / $150,000
• Blended Rate = ($5,000 + $3,500) / $150,000
• Blended Rate = 0.0567 = 5.67%
About Blended Rate Calculator
A blended rate calculator helps you find the weighted average interest rate when you have multiple loans or debts with different interest rates. The blended rate represents the effective interest rate across all your loans combined, weighted by the amount of each loan. This is useful for understanding your overall debt cost, comparing consolidation options, or calculating the true cost of multiple loans.
When to Use This Calculator
- Debt Consolidation: Understand your current blended rate before consolidating
- Loan Comparison: Compare current blended rate to consolidation loan rates
- Financial Planning: Understand overall cost of multiple loans
- Refinancing: Evaluate if refinancing all loans makes sense
Understanding Blended Rates
- Weighted Average: Larger loans have more weight in the calculation
- Effective Rate: Represents the true cost across all loans
- Comparison Tool: Use to compare against consolidation loan rates
- Multiple Loans: Can calculate for 2 or more loans
Why Use Our Calculator?
- ✅ Quick Calculation: Instantly find your blended rate
- ✅ Debt Analysis: Understand overall debt costs
- ✅ Consolidation Planning: Compare to consolidation options
- ✅ Accurate: Proper weighted average calculation
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is a blended interest rate?
A blended interest rate is the weighted average interest rate across multiple loans or debts. It's calculated by weighting each loan's interest rate by its loan amount, giving you the effective interest rate for all loans combined.
Why is the blended rate different from the average rate?
The blended rate is a weighted average, not a simple average. Larger loans have more influence on the blended rate. For example, a $100,000 loan at 5% has more weight than a $10,000 loan at 10% in the calculation.
How do I use blended rate for debt consolidation?
Calculate your current blended rate, then compare it to consolidation loan offers. If a consolidation loan has a lower rate than your blended rate, it may save you money. However, also consider fees, terms, and other factors.
Can I calculate blended rate for more than 2 loans?
The formula works for any number of loans: Blended Rate = Sum of (Loan Amount × Rate) / Total Loan Amount. You can manually add more loans by calculating weighted components for each loan and dividing by the total.