{"id":308,"date":"2015-06-02T10:06:35","date_gmt":"2015-06-02T08:06:35","guid":{"rendered":"http:\/\/wpcalc.com\/?p=308"},"modified":"2026-09-30T19:26:25","modified_gmt":"2026-09-30T16:26:25","slug":"blended-rate","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/blended-rate\/","title":{"rendered":"Blended Rate Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 id=\"calculator-title\" class=\"text-lg font-display font-bold\">Combined Loan Blended Rate Calculator<\/h2><\/div><div class=\"calcdash-favorite group\">\n  <button type=\"button\" class=\"favorite\" id=\"favorite\" data-favorite-id=\"308\" data-favorite-title=\"Blended Rate\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/blended-rate\/\" data-favorite-excerpt=\"Calculate the blended interest rate of two loans with different amounts and rates. Enter each loan&#039;s balance and rate to find the weighted average rate you effectively pay.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-loan\">\n    <span class=\"icon icon-shape-star-empty\" aria-hidden=\"true\"><\/span>\n  <\/button>\n  <div class=\"calcdash-favorite__tip\" aria-hidden=\"true\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n  <span class=\"sr-only\" role=\"status\" id=\"favorite-status\"><\/span>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/blended-rate\/\" method=\"POST\" class=\"calculator\" id=\"calculator-308\" data-post=\"308\"><fieldset class=\"fieldset-input\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field has-term\" id=\"input-1\"><label for=\"field-1\">First loan amount<\/label><div class=\"term\">L1<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"first_loan_amount\" id=\"field-1\" aria-describedby=\"calc-unit-1 calc-info-1\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"100000\"\/><div class=\"unit\" id=\"calc-unit-1\">$<\/div><small id=\"calc-info-1\">Enter the amount of the first loan<\/small><\/div><div class=\"field has-term\" id=\"input-2\"><label for=\"field-2\">First loan interest rate<\/label><div class=\"term\">r1<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"first_loan_interest_rate\" id=\"field-2\" aria-describedby=\"calc-unit-2 calc-info-2\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" max=\"100\" value=\"4\"\/><div class=\"unit\" id=\"calc-unit-2\">%<\/div><small id=\"calc-info-2\">Enter the interest rate of the first loan<\/small><\/div><div class=\"field has-term\" id=\"input-3\"><label for=\"field-3\">Second loan amount<\/label><div class=\"term\">L2<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"second_loan_amount\" id=\"field-3\" aria-describedby=\"calc-unit-3 calc-info-3\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"50000\"\/><div class=\"unit\" id=\"calc-unit-3\">$<\/div><small id=\"calc-info-3\">Enter the amount of the second loan<\/small><\/div><div class=\"field has-term\" id=\"input-4\"><label for=\"field-4\">Second loan interest rate<\/label><div class=\"term\">r2<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"second_loan_interest_rate\" id=\"field-4\" aria-describedby=\"calc-unit-4 calc-info-4\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" max=\"100\" value=\"6\"\/><div class=\"unit\" id=\"calc-unit-4\">%<\/div><small id=\"calc-info-4\">Enter the interest rate of the second loan<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"308\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Blended Interest Rate<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"%\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><\/div><div class=\"result-actions\"><button type=\"button\" class=\"copy-link\"><svg viewBox=\"0 0 20 20\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M12.232 4.232a2.5 2.5 0 0 1 3.536 3.536l-1.225 1.224a.75.75 0 0 0 1.061 1.06l1.224-1.224a4 4 0 0 0-5.656-5.656l-3 3a4 4 0 0 0 .225 5.865.75.75 0 0 0 .977-1.138 2.5 2.5 0 0 1-.142-3.667l3-3Z\"\/><path d=\"M11.603 7.963a.75.75 0 0 0-.977 1.138 2.5 2.5 0 0 1 .142 3.667l-3 3a2.5 2.5 0 0 1-3.536-3.536l1.225-1.224a.75.75 0 0 0-1.061-1.06l-1.224 1.224a4 4 0 1 0 5.656 5.656l3-3a4 4 0 0 0-.225-5.865Z\"\/><\/svg><span class=\"copy-link__text\">Copy link to this calculation<\/span><\/button><span class=\"sr-only\" role=\"status\" id=\"copy-link-status\"><\/span><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"308\" aria-live=\"polite\" aria-labelledby=\"calc-reactions-title\"><p id=\"calc-reactions-title\" class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/p><div role=\"group\" aria-labelledby=\"calc-reactions-title\" class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><div class=\"calcdash-ad not-prose calcdash-ad--calc_result calcdash-ad--in-article\"><ins class=\"adsbygoogle\" style=\"display:block\" data-ad-client=\"ca-pub-1721569815777345\" data-ad-slot=\"6317458308\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\"><\/ins><script>(adsbygoogle = window.adsbygoogle || []).push({});<\/script><\/div>\n<style id=\"wpcoderpro-inline-1\">.formula-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Blended Interest Rate Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[ \\text{Blended Rate (\\%)} = \\frac{L_1 \\times r_1 + L_2 \\times r_2}{L_1 + L_2} \\]\n<\/div>\r\n\t<\/figure>\r\n\t<\/p>\n<p><strong>Where:<\/strong><\/p>\n<ul>\n<li>\\(L_1\\) \u2014 amount of the first loan<\/li>\n<li>\\(r_1\\) \u2014 interest rate of the first loan (%)<\/li>\n<li>\\(L_2\\) \u2014 amount of the second loan<\/li>\n<li>\\(r_2\\) \u2014 interest rate of the second loan (%)<\/li>\n<\/ul>\n<p>The formula is a weighted average: each loan's rate contributes in proportion to its share of the total debt, so the result always falls between the two individual rates.<\/p>\n<p>\r\n<\/section>\n<style id=\"wpcoderpro-inline-459\">.calculation-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>Blended Rate \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<\/p>\n<p><strong>Example:<\/strong> you have a first loan of $100,000 at 4% interest and a second loan of $50,000 at 6% interest, and you want the combined rate on the total $150,000 of debt.<\/p>\n<p>\\[ \\text{Blended Rate} = \\frac{100{,}000 \\times 4 + 50{,}000 \\times 6}{100{,}000 + 50{,}000} = \\frac{400{,}000 + 300{,}000}{150{,}000} \\]<\/p>\n<p>\\[ \\text{Blended Rate} = \\frac{700{,}000}{150{,}000} \\approx 4.67\\% \\]<\/p>\n<p><strong>Result:<\/strong> the blended interest rate is approximately <strong>4.67%<\/strong> on the combined $150,000 debt.<\/p>\n<p>\n\r\n<\/section>\n<h2>How to Use the Blended Rate Calculator<\/h2>\n<ol>\n<li>Enter the <strong>First loan amount<\/strong> in dollars (for example, an existing mortgage balance).<\/li>\n<li>Enter the <strong>First loan interest rate<\/strong> as a percentage, e.g. 4 for 4%.<\/li>\n<li>Enter the <strong>Second loan amount<\/strong> in dollars (for example, a second mortgage or home equity loan).<\/li>\n<li>Enter the <strong>Second loan interest rate<\/strong> as a percentage, e.g. 6 for 6%.<\/li>\n<li>Read the <strong>Blended Interest Rate<\/strong>, shown as a percentage rounded to two decimal places.<\/li>\n<\/ol>\n<h2>What Is a Blended Rate?<\/h2>\n<p>A blended rate is the single, weighted-average interest rate that applies when two loans with different rates are combined into one total debt. Instead of thinking of your debt as \"part at 4% and part at 6%,\" the blended rate tells you what you effectively pay on every dollar borrowed. It is the standard way lenders and borrowers describe the overall cost of overlapping loans.<\/p>\n<p>The rate is weighted by loan size, not a simple average. In the example above, simply averaging 4% and 6% would give 5%, but because the 4% loan is twice as large, it pulls the true blended rate down to 4.67%. This is why a blended rate always lies between the two individual rates, closer to the rate of the larger loan.<\/p>\n<p>Blended rates matter in several real situations. When you refinance a first mortgage while keeping a second mortgage or home equity line of credit, lenders often quote the new loan based on a blended rate of both debts. Buyers using a piggyback second loan to avoid private mortgage insurance, or investors combining a primary mortgage with a secondary loan, also use blended rates to compare options. If you are weighing a <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortagage-refinancing-rates\/\">mortgage refinancing<\/a> decision, the blended rate tells you whether consolidation actually lowers your overall cost.<\/p>\n<h2>Interpreting the Result<\/h2>\n<p>The blended rate answers the question: \"What single rate would produce the same total annual interest on the combined balance?\" If it is lower than the rate a lender offers on a new consolidated loan, refinancing into one loan would cost you more in interest; if the new rate is below the blended rate, consolidation would save money.<\/p>\n<p>You can verify the result by computing total annual interest: multiply each balance by its rate, add them together, and divide by the combined balance. In the example, \\(100{,}000 \\times 0.04 + 50{,}000 \\times 0.06 = 7{,}000\\) dollars of annual interest on \\(150{,}000\\) dollars of debt, which is exactly \\(4.67\\%\\).<\/p>\n<h2>Assumptions, Limitations and Tips<\/h2>\n<ul>\n<li><strong>Simple weighting only.<\/strong> The calculator weights rates by principal balance. It does not account for amortization schedules, differing loan terms, or how rates may change over time on adjustable-rate loans.<\/li>\n<li><strong>Two loans maximum.<\/strong> For more than two loans, blend two at a time: calculate the blended rate of the first pair, treat the result as one \"loan\" with the combined balance, then blend it with the next loan.<\/li>\n<li><strong>Use current balances.<\/strong> Enter the remaining principal on each loan, not the original amounts, especially for older loans that have been partially paid down.<\/li>\n<li><strong>Rate vs. APR.<\/strong> The blended rate uses nominal interest rates. Fees, closing costs, and points are not included; for those, compare the <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-apr\/\">Mortgage APR<\/a> of a new consolidated loan instead.<\/li>\n<li><strong>Refinancing check.<\/strong> Before consolidating, estimate what a single new loan would cost with the <a href=\"https:\/\/wpcalc.com\/en\/finance\/loan-calculator\/\">Loan Calculator<\/a> or the <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-calculator\/\">Mortgage Calculator<\/a>, and compare that rate to your blended rate.<\/li>\n<\/ul>\n<h2>Quick Reference: Effect of Loan Size on the Blended Rate<\/h2>\n<table>\n<thead>\n<tr>\n<th>Loan 1 ($100,000 @ 4%)<\/th>\n<th>Loan 2 (@ 6%)<\/th>\n<th>Blended Rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>$100,000<\/td>\n<td>$0<\/td>\n<td>4.00%<\/td>\n<\/tr>\n<tr>\n<td>$100,000<\/td>\n<td>$50,000<\/td>\n<td>4.67%<\/td>\n<\/tr>\n<tr>\n<td>$100,000<\/td>\n<td>$100,000<\/td>\n<td>5.00%<\/td>\n<\/tr>\n<tr>\n<td>$100,000<\/td>\n<td>$200,000<\/td>\n<td>5.33%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>As the table shows, the higher-rate loan drags the blended rate upward in proportion to its share of total debt. The larger the balance at the higher rate, the closer the blended rate moves toward it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Calculate the blended interest rate of two loans with different amounts and rates. Enter each loan's balance and rate to find the weighted average rate you effectively pay.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[30],"class_list":["post-308","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mortgage"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=308"}],"version-history":[{"count":3,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/308\/revisions"}],"predecessor-version":[{"id":66054,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/308\/revisions\/66054"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}