Blended Rate Calculator
Calculate the blended interest rate and monthly payment for multiple loans
| Detail | Loan 1 | Loan 2 |
|---|---|---|
| Monthly Payment | - | - |
| Total Interest | - | - |
| Total Payment | - | - |
• Comparing multiple loan options
• Refinancing existing loans
• Evaluating combined debt costs
• Assessing portfolio interest rates
• Calculating average borrowing costs
• Doesn't account for different loan terms
• Assumes same repayment periods
• Doesn't reflect changing rates
• Doesn't consider fees or penalties
• Simple average may not reflect true cost
A Blended Rate Calculator helps determine the weighted average interest rate across multiple loans, debts, or investments with different rates and balances. It is useful for debt consolidation, refinancing, and investment portfolio analysis.
How a Blended Rate Calculator Works
The calculator computes a single effective interest rate by weighting each loan's rate by its balance:
Example Calculation
| Loan | Balance | Interest Rate |
|---|---|---|
| Loan 1 | $10,000 | 5% |
| Loan 2 | $20,000 | 7% |
Result: The blended rate is 6.33%.
Key Inputs Required
Loan Balances – Principal amounts of each loan/debt.
Interest Rates – Corresponding annual interest rates.
Optional: Payment Terms – If calculating refinancing scenarios.
Common Uses of a Blended Rate Calculator
✅ Debt Consolidation – Find the average rate when combining multiple loans.
✅ Refinancing Analysis – Compare blended rates before/after refinancing.
✅ Investment Portfolios – Calculate average returns across different assets.
✅ Business Financing – Assess the cost of capital from multiple lenders.
Limitations
⚠ Ignores Loan Terms – Only considers interest rates, not repayment periods.
⚠ Assumes Fixed Rates – Adjustable-rate loans may change over time.