If you have more than one loan — whether that's two mortgages, a mix of student loans, or a handful of debts at different interest rates — this blended rate calculator shows you what you're actually paying across all of them combined. Enter each balance and its interest rate, and you'll get your true weighted average borrowing cost in seconds.
Whether you're trying to decide if refinancing makes sense, comparing your current debts to a consolidation offer, or just want a clearer picture of your overall interest burden, knowing your blended rate gives you a number you can actually work with.
What Is a Blended Rate?
A blended rate (sometimes called a weighted average interest rate) is a single interest rate that represents the combined cost of multiple loans or debts, taking into account how large each one is.
Here's why a simple average doesn't work: if you have a $200,000 mortgage at 6.5% and a $10,000 personal loan at 12%, the average of those two rates is 9.25% — but that number is misleading. Your $200,000 mortgage dominates your total debt picture far more than the personal loan does. Your blended rate accounts for that, weighting each loan by its balance to give you a more accurate single figure.
The result tells you the effective rate you're paying across your entire debt portfolio. It's the number that matters most when you're deciding whether to refinance, consolidate, or just track how your borrowing costs are changing over time.
The Blended Rate Formula
The calculation is a weighted average:
Blended Rate = (Sum of each Balance × its Rate) ÷ Total Balance
In formula terms:
Blended Rate = Σ(Balance × Rate) ÷ Σ(Balance)
Worked example:
- Loan A: $100,000 at 6.0%
- Loan B: $50,000 at 8.0%
Step 1: Weighted sum = ($100,000 × 0.06) + ($50,000 × 0.08) = $6,000 + $4,000 = $10,000 Step 2: Total balance = $150,000 Step 3: Blended rate = $10,000 ÷ $150,000 = 6.67%
Notice that the blended rate (6.67%) is closer to the 6% rate because that loan carries twice the balance. The calculator handles this math automatically — you just enter the numbers.
When Would You Need a Blended Rate?
First and second mortgages: Many homebuyers use a second mortgage or home equity loan alongside their primary mortgage. Lenders and financial advisors use blended rates to quickly summarize the combined cost of both.
Student loan management: If you graduated with several federal and private student loans at different rates, your blended rate tells you what you're effectively paying. This is especially useful when comparing your current loans against a refinancing offer from a private lender.
Debt consolidation decisions: Thinking about rolling multiple debts into a single personal loan or home equity line? Your blended rate is the benchmark — if the consolidation rate is lower, you'd save on interest. If it's higher, you'd pay more.
Business financing: Companies often carry multiple credit lines, equipment loans, and term loans at different rates. The blended rate gives finance teams and business owners a clean summary of their overall cost of capital.
Comparing refinancing offers: A lender offering to refinance multiple loans into one might quote you a single new rate. Knowing your current blended rate lets you evaluate that offer properly.
How to Use This Calculator
- Enter your first loan balance — type in the current outstanding balance in dollars (not the original loan amount).
- Enter the interest rate — use the annual interest rate as a percentage (e.g., type 6.5 for 6.5%).
- Add more loans — click "Add another" to add each additional loan. You can include up to 10.
- Read your result — the calculator instantly shows your effective blended rate as a percentage.
You can remove any entry that doesn't apply, and the result updates in real time as you make changes.
Practical Examples
Example 1: Two Mortgages
You bought a home using a first mortgage of $280,000 at 6.25% and a second mortgage of $70,000 at 8.00%.
Loan | Balance | Rate |
|---|---|---|
First mortgage | $280,000 | 6.25% |
Second mortgage | $70,000 | 8.00% |
**Blended rate** | **$350,000** | **6.60%** |
Your blended rate is 6.60%. If a lender offers to refinance both into a single loan at 6.75%, you'd actually be paying more in interest than you do now — so that deal isn't as attractive as it sounds.
Example 2: Multiple Student Loans
You have three federal student loans from different academic years:
Loan | Balance | Rate |
|---|---|---|
Subsidized loan | $18,000 | 4.99% |
Unsubsidized loan | $22,000 | 6.54% |
Graduate PLUS loan | $15,000 | 7.54% |
**Blended rate** | **$55,000** | **6.28%** |
Your blended rate is approximately 6.28%. If a private refinance offer comes in at 5.75%, it's worth evaluating — though keep in mind you'd lose federal protections like income-driven repayment and forgiveness options.
Example 3: Mixed Consumer Debt
You're considering a debt consolidation loan to simplify your payments:
Debt | Balance | Rate |
|---|---|---|
Credit card | $8,500 | 21.99% |
Car loan | $11,000 | 7.49% |
Personal loan | $4,000 | 13.50% |
**Blended rate** | **$23,500** | **14.18%** |
Your blended rate is 14.18%. A consolidation loan at 10.99% would meaningfully reduce your interest costs — and it would simplify three separate payments into one.
Blended Rate and Refinancing: What It Actually Tells You
Your blended rate is the baseline you need before evaluating any refinancing or consolidation offer. Here's how to use it:
- New rate lower than your blended rate? Refinancing will reduce your interest costs. Run the numbers on fees and term length to confirm it's worth it overall.
- New rate higher than your blended rate? You'd be paying more in interest, even if monthly payments are lower (because the term got longer). That's a trade-off worth understanding clearly.
- Rates are close? Other factors — simplifying payments, locking in a fixed rate, releasing a co-signer — might still make it worthwhile.
One important note: the blended rate doesn't account for loan terms. If your two loans have different payoff timelines, the blended rate won't capture the full cost picture. For those situations, a full amortization comparison gives a more complete answer.
Important Notes
This calculator determines the weighted average interest rate based on balances and rates you enter. It doesn't factor in loan fees, origination costs, repayment terms, or compounding frequency differences between loans. For a complete comparison when evaluating refinancing, use the blended rate as a starting point and factor in all associated costs.
Interest rates shown are for comparison purposes. Always confirm current loan terms and consult with a financial advisor before making decisions about refinancing or debt consolidation.