What Is a Blended Rate Calculator?
A blended rate calculator finds the single combined interest rate across several loans or balances, weighting each rate by its amount. The blended rate tells you your true overall cost of borrowing when you carry multiple debts at different rates — useful for deciding whether to consolidate or refinance. Enter each balance and its rate, and the calculator returns the blended (weighted-average) rate.
How to Use the Calculator
- Enter each balance and its interest rate.
- Add as many loans or balances as you have.
- Calculate — see the blended rate.
The Blended Rate Formula
Blended Rate = Σ (Balance × Rate) ÷ Σ Balance
Each balance's rate is weighted by its size, so larger balances influence the blended rate more. For example, $10,000 at 5% and $30,000 at 7% gives ((10,000 × 5) + (30,000 × 7)) ÷ 40,000 = 6.5%.
Worked Example
| Balance | Rate | Weighted (Balance × Rate) |
|---|---|---|
| $10,000 | 5% | 50,000 |
| $30,000 | 7% | 210,000 |
| $40,000 | Blended 6.5% | 260,000 |
Why the Blended Rate Helps
- True cost: shows your overall borrowing rate across all debts.
- Refinance decisions: compare a single offered rate against your blended rate.
- Consolidation: see whether combining loans would lower your rate.
- Budgeting: understand your weighted interest burden.
Frequently Asked Questions
What is a blended rate?
A blended rate is the weighted-average interest rate across multiple balances, where each rate is weighted by the size of its balance.
How do you calculate a blended rate?
Multiply each balance by its rate, sum the results, and divide by the total of all balances. Larger balances carry more weight.
Why is the blended rate weighted?
Because a larger balance has more impact on your total interest, weighting by amount gives a true picture of your overall cost rather than a simple average of the rates.
How do I use the blended rate for refinancing?
Compare the blended rate of your current debts to a single offered refinance or consolidation rate. If the new rate is lower, refinancing may save money.
Is this blended rate calculator free?
Yes — it is completely free, requires no signup, and combines any number of balances.