How to use
- Enter the first balance and its rate.
- Enter the second balance and its rate.
- Press Calculate. The hero is the weighted percent. The combined balance is beside it.
- The loan comparison page shows two payments side by side. This page produces one rate.
How it's calculated
Weighted rate = (balance one × rate one + balance two × rate two) ÷ (balance one + balance two).
A zero balance drops that debt out. Both balances at zero are rejected. The rates stay in percent. The page does not convert them to a payment.
Worked example
Ten thousand dollars at 6 percent and five thousand dollars at 18 percent: (10,000 × 6 + 5,000 × 18) ÷ 15,000 = 10 percent. A plain average of 6 and 18 is 12 percent, which overstates the rate because the cheaper balance is larger.
Assumptions
Two debts, or two groups you already combined. Fees that are not inside the rates are ignored. The result is not the APR of a consolidation loan. A new loan has its own term and fees.
FAQ
Why isn't the average 12 percent?
Because the balances are not equal. The larger balance pulls the average toward its own rate.
Can I do three debts?
Combine two of them first, read the weighted rate and the total balance, and enter that pair as balance one.
Does this tell me which debt to pay first?
No. A payoff order depends on the rates and the payments. This page only averages.
Is a weighted rate the same as APR?
No. APR on this site is a conversion between APR and APY, or the rate you type into a loan. This is an average of two rates you already have.