Enter loan amounts and rates to see blended rate…
Blended Rate Calculator. Combines up to 3 loans into a single weighted average interest rate. Real-time, visual, step-by-step. Perfect for mortgage refinancing or debt consolidation.
When you have multiple loans or mortgages with different interest rates, calculating your overall or average rate can be confusing. The Blended Rate Calculator simplifies this process — showing your true effective interest rate based on the balance and rate of each loan.
A blended rate calculator is an essential financial tool for anyone looking to consolidate loans, refinance, or understand the true cost of borrowing when multiple loans with different interest rates are involved. It helps users easily find the average interest rate across all their debts, providing a clear picture for better financial decision-making.
A blended rate calculator determines the weighted average interest rate for a group of loans or investments. This means it takes into account both the amounts and interest rates for each, resulting in a single effective rate. It’s particularly useful for mortgage refinancing, consolidating personal loans, or comparing overall borrowing costs. A blended rate is the weighted average interest rate of two or more loans. It combines multiple loan balances and rates into one simplified rate that reflects the total cost of borrowing.
For example, if you have:
Loan A: $50,000 at 4%
Loan B: $100,000 at 6%
Your blended rate isn’t 5% (the simple average) — it’s 5.33%, because the larger loan has a greater impact on the overall rate.
This calculation is especially useful when you’re:
Refinancing multiple loans into one,
Combining mortgage segments,
Managing student loans, or
Tracking your company’s overall borrowing cost.
A Blended Rate Calculator automatically computes your combined interest rate using loan amounts and interest rates.
It applies the weighted average formula:
Where:
A1,A2,…A_1, A_2, \ldots = Loan amounts
R1,R2,…R_1, R_2, \ldots = Interest rates
This formula ensures that larger loans influence the overall rate more heavily.
Let’s look at a simple example.
| Loan | Amount | Interest Rate |
|---|---|---|
| Loan 1 | $60,000 | 4.0% |
| Loan 2 | $40,000 | 6.0% |
Now calculate the total weighted interest:
(60,000×4)+(40,000×6)=240,000+240,000=480,000
Divide by the total loan amount:
480,000÷100,000=4.8%480,000 ÷ 100,000 = 4.8\%
Your blended rate is 4.8%.
Knowing your blended rate helps you make smarter financial decisions. Here’s why it’s important:
When refinancing multiple loans or mortgages, the blended rate helps you determine whether the new combined loan offers a better deal.
Understanding your overall interest rate gives a more accurate view of how much interest you’re paying across all debts.
It allows you to compare your current blended rate to other financing options to decide if consolidation is beneficial.
Businesses often use blended rates when managing multiple credit lines or investment financing at different rates.
Mortgage lenders often use blended rates when you refinance or renew part of your mortgage early. If you already have a portion of your loan at a fixed rate and you add more funds or renew early, the lender combines your old rate and new rate based on their respective balances and remaining terms.
Existing Mortgage: $150,000 at 3.5%
New Portion: $50,000 at 6.0%
Your blended mortgage rate will be around 4.0%, depending on terms and lender policies. This gives you a smoother transition rather than paying two separate rates.
Let’s take three loans as an example:
| Loan | Amount | Interest Rate |
|---|---|---|
| A | $20,000 | 5% |
| B | $30,000 | 7% |
| C | $50,000 | 9% |
(20,000×5)+(30,000×7)+(50,000×9)=100,000+210,000+450,000=760,000
Total loan amount = $100,000
760,000÷100,000=7.6%760,000 ÷ 100,000 = 7.6\%
Your blended rate = 7.6%
The Blended Rate Calculator is an essential tool for anyone managing multiple loans or considering refinancing. By combining all your loans and interest rates, it provides a clear picture of your true cost of borrowing.
A Blended Rate Calculator is your 2025 debt mastery tool for UK and USA—turning £20k @ 7% + £10k @ 18% into 12.3% blended with consolidation savings, FCA/FTC accuracy, and PDF plans. On Gcalculate.com, get HELOC, remortgage, 0% transfer, and UK vs US comparison. From London to LA, blend smart, pay less.
A blended rate is the weighted average of multiple interest rates based on each loan’s balance. It reflects your overall cost of borrowing.
Multiply each loan amount by its rate, sum the results, then divide by the total loan amount.
Example:
(60,000×4%+40,000×6%)÷100,000=4.8%
It gives you an accurate average rate instantly — saving time and eliminating manual errors.
Yes. It’s commonly used for mortgage refinancing or top-up loans where part of your mortgage remains at an older rate.
Recalculate whenever your loan balances or interest rates change, especially after refinancing or adding new debt.
A blended rate combines two or more rates, while a fixed rate remains constant for one specific loan.
Usually, yes — but check other factors like loan terms, early repayment charges, and fees before refinancing.