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Calculate your blended mortgage rate instantly with our free Blended Rate Mortgage Calculator. Combine multiple loans and find your true interest rate easily.
BR = (LβΓRβ + LβΓRβ + β¦ + LβΓRβ) Γ· (Lβ + Lβ + β¦ + Lβ)L = Loan Balance | R = Interest Rate (decimal)
A blended rate mortgage helps you understand the true interest rate when you combine two or more loans into one. Many homeowners refinance, merge loans, or take additional mortgages without knowing their real average rate. This is where a Blended Rate Mortgage Calculator becomes useful.
We developed this online calculator to help users quickly and accurately calculate their blended mortgage rate. It is simple, fast, and designed for everyone, even without financial knowledge.
In this guide, you will learn what a blended rate mortgage is, how to calculate it, how to use our calculator, and how it can help you make better financial decisions.
A blended rate mortgage is the combined interest rate of multiple loans based on their balances. Instead of averaging rates normally, it uses a weighted method.
This means bigger loans have more impact on the final rate than smaller ones.
For example, if you have one large loan at a low rate and a small loan at a high rate, the blended rate will be closer to the lower rate.
This method shows your real borrowing cost when loans are combined.
The blended mortgage rate is calculated using a weighted average formula. Each loanβs balance is multiplied by its interest rate. Then, all results are added and divided by the total loan amount.
This gives a fair and accurate average rate.
The blended rate mortgage formula is:
Blended Rate = (Balance1 Γ Rate1 + Balance2 Γ Rate2 + Balance3 Γ Rate3 + β¦) Γ· (Balance1 + Balance2 + Balance3 + β¦)
In simple words:
Add all βloan amount Γ interest rateβ values, then divide by the total loan balance.
Make sure all interest rates are in decimal format before calculation.
Example conversion:
4% = 0.04
5.5% = 0.055
A blended fee rate is calculated in the same way as a blended mortgage rate. Instead of interest rates, you use fee percentages.
The formula is:
Blended Fee Rate = (Amount1 Γ Fee1 + Amount2 Γ Fee2 + β¦) Γ· Total Amount
This method is used in finance, lending, and business to find combined costs.
Using our online Blended Rate Mortgage Calculator is very easy.
Within seconds, the calculator will show your blended interest rate, total loan balance, annual interest, and monthly interest.
You do not need to do any manual calculation. Everything is automatic and accurate.
Let us understand with a real example.
Suppose you have two loans.
Loan 1 balance is 200,000 and interest rate is 4%.
Loan 2 balance is 100,000 and interest rate is 5%.
Step 1: Convert rates to decimal.
4% = 0.04
5% = 0.05
Step 2: Multiply balance and rate.
200,000 Γ 0.04 = 8,000
100,000 Γ 0.05 = 5,000
Step 3: Add results.
8,000 + 5,000 = 13,000
Step 4: Add balances.
200,000 + 100,000 = 300,000
Step 5: Divide.
13,000 Γ· 300,000 = 0.04333
Step 6: Convert to percentage.
0.04333 = 4.33%
So, the blended mortgage rate is 4.33%.
This means your combined loan works like one mortgage at 4.33% interest.
A blended rate calculator helps you understand your real borrowing cost.
Whether you are refinancing, merging loans, or adding a second mortgage, this tool is very helpful.
A blended rate mortgage shows the true interest cost when you combine multiple loans. Without calculating it, you may misunderstand your real financial situation.
Our Blended Rate Mortgage Calculator makes this process simple, accurate, and quick. It uses the correct weighted average formula and gives instant results.
If you are planning to refinance, merge loans, or analyze your mortgage, this calculator is the perfect tool for you.
Use it today to make better financial decisions with confidence.
A blended rate mortgage is the average interest rate of multiple loans, calculated based on their balances.
If it uses the weighted average formula, it is mathematically accurate. Our calculator follows this standard method.
Yes, you can add multiple loans and calculate a combined blended rate.
No, it calculates interest only. Fees must be added separately for full cost analysis.
Yes, it helps you compare your current combined rate with new refinance offers.
Yes, our calculator also shows estimated annual and monthly interest.