Blended rate calculator

This blended rate calculator lets you look at your total debt across several loans. It is especially useful when considering a cash out refinance or other types of debt consolidation.

How it works

Enter in each amount of debt and the corresponding interest rate. This tool weighs the debt by the interest rate, coming up with how much interest you are paying on the total debt.

How to interpret it

If your total interest rate exceeds an available rate that you can borrow at, you might consider refinancing the total debt into a lower rate. For example, if you have a mortgage at a 7% rate of 340,000, a credit card with $25,000 at a 20% rate and a credit card of $5,000 balance at 22% rate, your blended rate is 8.081%. If you were to get a cash out refinance at 6.5%, that is significantly below the 8.081% blended rate you currently have.

This tool can be used to find advantageous ways to reduce the interest that you are currently paying on your debt. If you are interested in exploring refinancing, I can help you evaluate your options. Book a meeting with me at the link below. This can often be done simply by sending me your mortgage statement and some rough details about your debt and I can run the numbers for you as a complimentary evaluation.