Calculate a balance-weighted APR across multiple debts, with each row contributing according to its share of the total balance.
Formula snapshot
Blended APR = total weighted annual interest ÷ total balance. That balance-weighted rate is usually more useful than a plain average when one debt is much larger than the others.
Display currency
Choose the currency label before entering balances. This changes formatting only; APR weighting is the same in any currency.
Debt rows
Add or remove rows to compare balance-weighted borrowing costs.
Debt 1
Debt 2
Consolidation offer benchmark
Compare your blended APR with a refinance, balance-transfer, or debt consolidation offer before you look at repayment terms.
This benchmark treats the fee as added to the new balance. It is not a payoff schedule, but it shows whether the offer rate is clearly below the current weighted average.
Result
22.99%
Balance-weighted APR across 2 debts with a combined balance of $7,500.00.
Total balance
$7,500.00
Weighted annual interest
$1,724.25
Simple average APR
21.99%
Rate spread
6%
Comparison context
The blended APR is balance-weighted, so larger debts influence it more than smaller ones. Compared with a simple average, it is
1% higher.
Highest APR: 24.99%. Lowest APR: 18.99%. Largest balance share: 66.67%.
This is a rate snapshot, not a payoff forecast. It assumes the entered balances stay outstanding long enough for the annual interest estimate to matter.
Offer benchmark
Offer is below current blended APR
The offer APR is 10%
below the current blended APR. With $0.00 of fees added to the new balance, the one-year interest estimate changes by $750.00.
No fee break-even is shown because the entered fee is zero or the offer does not reduce monthly interest in this snapshot.
Blended rate calculator guide: weighted-average APR across multiple debts
A blended rate calculator shows the balance-weighted average APR across multiple debts or loans. This balance-weighted APR calculator takes the current balance and APR for each row, then calculates the combined balance, one-year interest implied by those balances, the blended APR, and how that result compares with a simple unweighted average of the entered rates.
Why a blended rate matters
If you have multiple debts at different APRs, a simple average can mislead because it gives the same weight to a small balance and a very large one. A blended rate corrects that by weighting each APR by its share of the total balance.
That makes the result useful for snapshot planning. It helps answer questions like whether the combined debt stack is closer to a 10% problem or a 20% problem, how much one high-rate balance is distorting the whole picture, and what a consolidation offer would need to beat to produce a meaningful rate improvement.
How to calculate a weighted-average APR
To calculate a weighted-average APR, multiply each balance by its APR, add the annual interest totals together, and divide by the total balance. The result is the blended rate across all debts rather than a plain arithmetic average of the entered APRs.
That is also why this page shows balance shares. A debt with a larger share of total balance has more influence on the blended result, so this tool behaves like a balance-weighted APR calculator rather than a simple average APR calculator.
Core blended-rate maths
Each balance contributes annual interest equal to balance multiplied by APR. The blended APR is then the total weighted annual interest divided by the total balance. Because large balances contribute more dollars of interest, they also pull the blended APR more strongly than small balances do.
This calculator also shows the simple average APR so you can see the difference between a true balance-weighted result and a plain arithmetic mean. When the biggest balances also have the highest APRs, the blended APR will usually sit above the simple average.
Annual interest for a row = Balance x APR
Each debt contributes its own one-year simple interest amount before the totals are combined.
Blended APR = Total weighted annual interest / Total balance
This is the balance-weighted average rate across all entered rows.
Balance share = Row balance / Total balance
Each debt’s share of total balance shows how heavily it influences the blended result.
Worked example: 10,000 at 15% plus 5,000 at 10%
Suppose one balance is 10,000 at 15% APR and another is 5,000 at 10% APR. The total balance is 15,000 and the combined one-year interest implied by those balances is 2,000.
That produces a blended APR of about 13.33%, not the 12.50% simple average of the two rates. The larger 15% balance carries two-thirds of the total debt, so it pulls the weighted result upward and drives 75% of the annual interest in the breakdown.
Compare the blended APR with a consolidation or refinance offer
A blended rate is most useful when it becomes a benchmark for a real decision. If a debt consolidation loan, balance-transfer offer, or refinance quote is not clearly below the current weighted-average APR after fees, the lower headline rate may not be enough to justify switching.
The offer benchmark on this page lets you enter a proposed APR and fees added to the new balance. It then compares the offer with the current blended APR, estimates the one-year interest difference, and shows whether the fee could be recovered from the monthly interest difference before repayment timing and term length are considered.
What this estimate excludes
This page is a static rate snapshot rather than a repayment simulator. It does not model minimum payments, amortization, rate resets, balance changes, consolidation term length, or the order in which debts would actually be paid down.
Use it to understand your current weighted borrowing cost. If you want to compare payoff strategies or a refinance offer, pair it with a debt payoff, debt consolidation, or loan comparison calculator.
A blended rate is most useful when you are comparing several debts with different APRs and very different balances. It is less useful when one debt will be paid off first anyway or when a lender offer adds fees, teaser pricing, or other trade-offs that this page cannot model.
In those situations, treat the blended APR as a benchmark. It tells you the current weighted borrowing cost, not the final result after a refinance, transfer, or payoff strategy.
Frequently asked questions
Why is the blended APR different from the simple average APR?
Because the blended APR gives more weight to larger balances. A simple average treats each APR equally even if one debt is much larger than the others.
Does a blended rate tell me how fast I will pay off the debt?
No. It is a snapshot of weighted borrowing cost, not a payoff model. Repayment speed depends on payment amounts, fees, and how balances change over time.
Can I use this to judge a consolidation offer?
Yes, as a starting benchmark. Enter the offer APR and any fees added to the new balance to see whether the offer is below your current blended APR and how the one-year interest estimate changes. You still need to compare term length, payment schedule, and total interest over time.
How should I enter an origination fee or balance-transfer fee?
Enter the fee amount in the offer benchmark if it is added to the new balance or effectively reduces the value of the offer. The calculator treats that fee as part of the financed balance for the one-year interest comparison.
Is blended APR the same as weighted-average APR?
Yes. In this context, blended APR is another way to say weighted-average APR across the debts or loans you enter.
What balance should I enter for each debt?
Enter the current outstanding balance for each debt row. That is what determines each APR’s share of the blended result.
