Enter up to 5 different loan or mortgage amounts and their current interest rates. The blended rate calculator will display the blended interest rate of all of the amounts.

## Blended Rate Formula

The following formula is used to calculate a blended rate from a series of different loan amounts and interest.

BR = Sum ( r * a) / #

- Where BR is the blended rate (%)
- r is the interest rate (%) of each loan
- a is the amount of each loan
- # is the total number of loans

How to calculate a blended rate

**First, gather all of the interest rates and loan amounts**Calculate or determine the amount of each loan and the % interest rate.

**Next, multiply the interest rates by the loan amounts**For each loan, multiply the total amount by the % rate. Keep each calculated number separate.

**Sum the values from step 2**Add up all of the values calculated in step 2.

**Calculate the blended rate**Finally, divide the sum of the values calculated in step 3 by the total number of loans.

## FAQ

**What is a blended rate?**

A blended rate is a term used in finance used to describe the weighted average of a set of different loan rates. It takes into account the total values of the loans, so that the blended rate is the effective rate of all loans together.

**Is each rate weighted equal in a blended rate?**

No, blended rates are weight by their total loan amounts. For example, if you had two loan amounts and rates, say 10,000 at 5% and 1,000 at 1%, the blended rate would be weighted towards 5% at 10 times the weight of 1%. In short, the blended rate would be more than 4.5%.

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