Finance calculators

Blended Rate Calculator

Updated Aug 31, 2026 By Jehan Wadia
Rate Formulas
Your Loans
Total Combined Balance
$0
Blended Interest Rate
0.00%
Total Monthly Payment
$0
Total Interest Paid
$0
Loan-by-Loan Breakdown
# Balance Rate Term Monthly Payment Total Interest Total Cost Weight
Balance Distribution
Interest Rate Comparison
Monthly Payment Breakdown
Total Cost Composition

Introduction

A blended interest rate is the average rate you pay across all your loans, weighted by how much you owe on each one. If you have two or more loans with different rates, this calculator finds your single combined rate. Just enter each loan's balance and interest rate. You can also add the loan term to see your monthly payment, total interest, and total cost. The tool then shows charts and a full breakdown so you can see exactly where your money goes.

How to Use Our Blended Rate Calculator

Enter the details for each of your loans below. The calculator will find your blended interest rate, total monthly payment, and total interest paid across all loans.

Loan Balance: Type the amount you still owe on each loan in dollars. For example, enter 145000 for a $145,000 loan.

Annual Interest Rate: Type the yearly interest rate for each loan as a percent. For example, enter 6.75 for a 6.75% rate.

Loan Term (Optional): Type the length of each loan in years. For example, enter 30 for a 30-year mortgage. Leave this blank if you only want the blended rate without payment details.

Add Loan: Click the "Add Loan" button to include more loans in your calculation. You must have at least two loans.

Calculate: Click the "Calculate" button to see your blended interest rate, combined monthly payment, total interest, and charts that break down each loan side by side.

Reset: Click the "Reset" button to clear your entries and start over with the default example loans.

What Is a Blended Interest Rate?

A blended interest rate is the average interest rate across all your loans, weighted by how much you owe on each one. If you have two or more loans with different rates, the blended rate tells you your true overall cost of borrowing. Bigger loans pull the blended rate closer to their rate, while smaller loans have less effect. The underlying math is similar to what our Weighted Average Calculator performs, applied specifically to interest rates and loan balances.

How to Calculate a Blended Rate

To find your blended rate, multiply each loan balance by its interest rate. Add those numbers together. Then divide by your total combined balance. The result is your weighted average interest rate. This calculator does all that math for you instantly.

Why the Blended Rate Matters

Knowing your blended rate helps you make smarter money decisions. For example, if someone offers to refinance all your loans into one new loan, you can compare the new rate to your blended rate. If the new rate is lower, refinancing could save you money. If it is higher, you are better off keeping your current loans. You can also check the full annual percentage rate with our APR Calculator to make sure fees are not erasing any rate savings.

When to Use This Calculator

This tool is useful when you have multiple loans such as a mortgage, car loan, student loan, or personal loan. It works for any type of debt with a fixed interest rate. Enter each loan's balance and rate to see your blended rate right away. Adding the loan term is optional but lets you also see monthly payments and total interest paid over time.

Formulas used

Blended Interest Rate
r_{\text{blended}} = \frac{\sum_{i=1}^{n} B_i \times r_i}{\sum_{i=1}^{n} B_i}
Monthly Payment (Fixed-Rate Amortization)
M = B \times \frac{r_m \left(1 + r_m\right)^{n}}{\left(1 + r_m\right)^{n} - 1}, \quad r_m = \frac{r}{12}
Total Cost of a Loan
C = M \times n
Total Interest Paid on a Loan
I = C - B = M \times n - B
Loan Weight (Balance Distribution)
w_i = \frac{B_i}{\sum_{j=1}^{n} B_j} \times 100\%
First Month Interest Portion
I_1 = B \times \frac{r}{12}
First Month Principal Portion
P_1 = M - I_1

Frequently asked questions

What does the blended rate tell me that individual rates do not?

The blended rate gives you one single number that shows your true overall borrowing cost across all loans. Individual rates only show the cost of each loan by itself. The blended rate accounts for how much you owe on each loan, so a large loan with a high rate pulls the blended rate up more than a small loan with the same high rate. This makes it easy to compare your current debt cost against a single refinance offer or new loan option.

Why is the loan term optional?

The loan term is only needed to calculate monthly payments and total interest paid over time. If you just want to know your blended interest rate, you do not need the term at all. The blended rate formula only uses balances and interest rates.

Is the blended rate the same as an APR?

No. The blended rate is a weighted average of your interest rates only. An APR includes fees, closing costs, and other charges on top of the interest rate. Your blended rate will usually be lower than a combined APR because it does not include those extra costs.

Why does my blended rate sit closer to my largest loan's rate?

Because the blended rate is weighted by balance. A loan with a bigger balance has more influence on the average. If your largest loan has a 7% rate and your smallest has a 4% rate, the blended rate will be much closer to 7% than to 4%.

What if one of my loans has a 0% interest rate?

That is fine. Enter 0 as the interest rate. The 0% loan will pull your blended rate down based on how large that loan's balance is compared to your other loans.

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