Blended Rate Calculator
Calculate the weighted average interest rate of multiple loans, debts, or amortizations
Enter Your Amortizations
Blended Rate Results
Formula used: Blended Rate = Σ(Balance × Rate) / Σ(Balance)
Calculation: $0.00 ÷ $0 = 0.000%
Note: All amortizations must have the same payment period for accurate results
Rate Analysis
Example Calculation
Credit Card Purchases Example
Item A: Laser printer - $2,000 at 2% monthly
Item B: 3D printer - $3,000 at 4% monthly
Item C: Plotter cutter - $200 at 3% monthly
Total balance: $5,200
Calculation
Total interest = ($2,000 × 2%) + ($3,000 × 4%) + ($200 × 3%)
Total interest = $40 + $120 + $6 = $166
Blended rate = $166 ÷ $5,200 = 3.192%
Result: 3.192% blended rate
Common Applications
Multiple Credit Cards
Calculate effective rate across cards
Loan Portfolio
Analyze combined loan rates
Mortgage Add-ons
Additional mortgage funding
Investment Analysis
Compare to single loan offers
Important Notes
All debts must have the same payment period
Use monthly rates for monthly payments
Compare blended rate to consolidation offers
Lower blended rates indicate better terms
Understanding Blended Rate
What is Blended Rate?
The blended rate is the weighted average of the interest rates of two or more amortizations combined into one single balance. It provides a single rate that represents the effective cost of your entire debt portfolio.
Why Use Blended Rate?
- •Simplify interest calculations across multiple debts
- •Compare to single loan consolidation offers
- •Understand your overall borrowing cost
- •Make informed debt management decisions
Formula Explanation
Blended Rate = Σ(Balance × Rate) / Σ(Balance)
- Σ: Sum of all values
- Balance: Principal amount owed
- Rate: Interest rate for each debt
- Result: Weighted average rate
Important: All rates must use the same time period (monthly, annual, etc.)
When to Use
- ✓Multiple credit card balances
- ✓Various loan types with different rates
- ✓Mortgage with additional funding options
- ✓Business debt portfolio analysis
Benefits
- •Single rate for portfolio comparison
- •Easier debt consolidation evaluation
- •Simplified financial planning
- •Better borrowing decisions