# Blended Rate Calculator

URL: https://speedycalculator.com/calculators/finance/blended-rate/
Last updated: 2026-10-25

> The blended rate calculator works out the weighted average interest rate of several loans or debts – for example a first mortgage and a HELOC – so you can compare it with a refinance or consolidation offer.

## Inputs

- Balance 1
- Rate 1 (%)
- Balance 2
- Rate 2 (%)
- Balance 3
- Rate 3 (%)
- Balance 4
- Rate 4 (%)
- Balance 5
- Rate 5 (%)

## Results

- Total balance
- Blended interest rate
- Yearly interest (simple)

## Formula

```
Blended rate = Σ (balance × rate) ÷ Σ balances
```

## Explanation

If a cash-out refinance rate is higher than your current mortgage rate, compare it with the blended rate of the mortgage plus a second loan before deciding. The blended rate weights each debt by its size.

### How to use the Blended Rate Calculator

- **Balance 1**
- **Rate 1**
- **Balance 2**
- **Rate 2**
- **Balance 3**
- **Rate 3**
- **Balance 4**
- **Rate 4**
- **Balance 5**
- **Rate 5**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the balance and interest rate of up to five debts.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterBalance 1Amount in your currencyRate 1In %Balance 2Amount in your currencyRate 2In %Balance 3Amount in your currencyRate 3In %Balance 4Amount in your currencyRate 4In %Balance 5Amount in your currencyRate 5In %

### What each result means

- **Total balance** = [Balance 1] + [Balance 2] + [Balance 3] + [Balance 4] + [Balance 5]
- **Blended interest rate** = ([Balance 1]×[Rate 1] + [Balance 2]×[Rate 2] + [Balance 3]×[Rate 3] + [Balance 4]×[Rate 4] + [Balance 5]×[Rate 5])÷[Total balance]
- **Yearly interest (simple)** = ([Balance 1]×[Rate 1] + [Balance 2]×[Rate 2] + [Balance 3]×[Rate 3] + [Balance 4]×[Rate 4] + [Balance 5]×[Rate 5])÷100

### Example values

How the main result changes when **Balance 1** changes and everything else stays at the example values above:

Balance 1Blended interest rate (%)150,0004.75225,0004.409300,0004.214375,0004.088450,0004600,0003.885

## Worked example

Inputs — Balance 1: $300,000; Rate 1: 3.5 %; Balance 2: $50,000; Rate 2: 8.5 %; Balance 3: $0; Rate 3: 0 %; Balance 4: $0; Rate 4: 0 %; Balance 5: $0; Rate 5: 0 %.

Results — Total balance = $350,000.00; **Blended interest rate = 4.214 %**; Yearly interest (simple) = $14,750.00.

## FAQ

**What is a blended interest rate?**
The balance-weighted average rate of several debts.

**When is it useful?**
When comparing a refinance or consolidation loan with your existing debts.

**Is it the same as a simple average?**
No – larger balances count more.

**What formula does the Blended Rate Calculator use?**
Blended rate = Σ (balance × rate) ÷ Σ balances.