Blended Rate Calculator
The single balance-weighted interest rate that represents all of your loans combined.
Weighted by balance
Bigger loans count for more, so the result reflects your real cost of debt — not a plain average.
Your consolidation benchmark
Any single loan that replaces your debts must beat this rate to save you interest.
What is a blended rate?
One number for all your debt
When you owe money on several loans at different rates, a blended rate condenses them into one figure: the rate that, applied to your total balance, produces the same interest as the loans do individually. It is a balance-weighted average, so a large loan influences it more than a small one. Lenders use the same idea when quoting a combined rate on consolidated debt.
The blended rate multiplies each loan's balance by its rate, sums those products, and divides by the total balance.
blended rate = sum of (balance × rate) ÷ sum of balancesThe weighting is the important part. Because the 20,000 loan is twice the size of the 10,000 loan, it pulls the blended rate toward its own 6.5 %, landing at 5.67 % rather than the plain average of 5.25 %.
Say you have a 20,000 loan at 6.5 % and a 10,000 loan at 4 %.
Weight each loan
20,000 × 6.5 = 130,000 and 10,000 × 4 = 40,000.Add the weighted figures
130,000 + 40,000 = 170,000.Divide by the total balance
170,000 ÷ 30,000 = 5.67 %.Use it as a benchmark
A consolidation loan below 5.67 % could save interest; one above it would cost more.
The blended rate is most useful as a yardstick when you are thinking about combining debts.
Beat the blend
A new loan only saves interest if its rate is below your blended rate.
Watch the term
A lower rate over a much longer term can still mean more total interest.
Mind the security
Consolidating unsecured debt into a secured loan puts an asset at risk.
As guidance from the Consumer Financial Protection Bureau stresses, the headline rate is only one part of a consolidation decision — the term, fees, and what backs the loan matter just as much.
The blended rate is your effective cost of borrowing across every loan you entered, and the total balance and annual interest show what that means in money. Remember it is a moving target: as you repay higher-rate and lower-rate loans at different speeds, the weights shift and the blended rate drifts. Recompute it whenever your balances change materially, and pair it with each loan's term and monthly payment before drawing conclusions about which debt to tackle first. As a strategy, paying down your highest-rate loan first lowers the blended rate fastest, even though it leaves the total balance unchanged in the short term.
A weighted average of rates leaves some things out.
A comparison metric, not advice
The blended rate is exact for the balances and rates you enter, but it does not account for loan terms, fees, compounding differences, promotional rates, or the tax treatment of any interest. It is for education and comparison only. Before consolidating or refinancing, consult a qualified financial advisor who can weigh the full cost, not just the rate.