Blended Rate Calculator
Calculate the weighted average interest rate across multiple loans. Enter the balance and rate for each loan to see your blended rate, total balance, and combined interest cost. Useful for student loans, mortgages, and debt consolidation decisions.
Your blended rate is the weighted average interest rate across all your loans. It tells you the single rate that represents your total debt cost. The formula is: Blended Rate = Sum of (Each Loan Balance x Its Rate) / Total Balance.
For example, a $25,000 loan at 4.5% and a $15,000 loan at 6.8% gives a blended rate of ($25,000 x 4.5% + $15,000 x 6.8%) / $40,000 = 5.36%. The larger loan carries more weight in the calculation because it represents more of your total debt.
Knowing your blended rate is especially useful when considering debt consolidation or refinancing. If a consolidation loan offers a rate below your blended rate, you save money. If the offered rate is above your blended rate, consolidation actually costs you more in interest even though it simplifies payments.
Student loan borrowers often have multiple federal and private loans at different rates. Calculating the blended rate helps you compare refinancing offers. Keep in mind that refinancing federal student loans into a private loan means losing access to income-driven repayment and loan forgiveness programs, so the rate comparison is only part of the decision.