FinToolSuite

Blended Rate Mortgage Calculator

Updated April 17, 2026 · Mortgage · Educational use only ·

Weighted-average rate across multiple loans.

Calculate the blended (weighted-average) interest rate across two mortgage loans of different balances and rates. Free and educational.

What this tool does

Enter two loan balances and their rates. The tool shows the blended rate across both — the effective rate you are paying on total debt.


Enter Values

Formula Used
Loan 1 balance
Loan 1 rate
Loan 2 balance
Loan 2 rate

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Blended rate is what you are effectively paying when you hold two loans. 200,000 at 3% plus 50,000 at 7% is not 5% — the larger low-rate loan dominates. Actual blended rate is 3.80%. This is the number that matters when comparing against a single refinance offer.

A worked example

Try the defaults: loan 1 balance of 200,000, loan 1 rate of 3%, loan 2 balance of 50,000, loan 2 rate of 7%. The tool returns 3.80%. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Loan 1 Balance, Loan 1 Rate, Loan 2 Balance, and Loan 2 Rate. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

The formula behind this

Weighted average of the two rates by balance. Simple version ignores differing remaining terms — use equal remaining terms for cleanest comparison. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

Why this matters before you sign

A mortgage is usually the biggest single financial commitment a person makes. The difference between a well-chosen product and a hasty one can run into tens of thousands over the life of the loan. Running the numbers here before committing is the cheapest form of due diligence available.

What this doesn't capture

The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.

Example Scenario

Blended rate produces a weighted-average percentage based on the inputs provided.

Inputs

Loan 1 Balance:200,000 £
Loan 1 Rate:3
Loan 2 Balance:50,000 £
Loan 2 Rate:7
Expected Result3.80%

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

Weighted average of the two rates by balance. Simple version ignores differing remaining terms — use equal remaining terms for cleanest comparison.

Frequently Asked Questions

When is this useful?
When deciding whether to refinance into a single loan. Compare your blended rate to any single-loan offer.
Does term length matter?
Yes. A short-term higher-rate loan amortises quickly, so its weight in the blend changes over time. This calculator shows today's blend, not future.
Is blended rate the same as APR?
No. APR includes fees and points. Blended rate is a pure rate-weighted-by-balance figure without fees.
Can I use this for more than 2 loans?
The same formula scales. This tool supports two; for more you would extend the same weighted-sum structure by hand.

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