This site’s debt consolidation calculator asks for a “weighted-average rate” as a direct input. This calculator computes that number from the individual loans behind it — the step the other calculator assumes is already done.
How it works
Each loan’s balance is multiplied by its own rate; those figures are summed and divided by the total balance across all loans. A larger balance pulls the weighted average toward its own rate more than a smaller balance does — a plain average of the rates alone would ignore that entirely.
What this does not include
Federal student loan consolidation specifically rounds the result up to the nearest one-eighth of one percent, per the Federal Student Aid source — this calculator shows both the exact figure and that rounded figure, since not every use of a weighted rate follows the federal rounding rule.
How to use this calculator
- Enter the balance and rate for each loan you’re blending (up to three).
- Leave any unused loan slots at zero.
Frequently asked questions
Why isn’t this just the average of the rates?
Because a plain average treats every loan equally regardless of size — a $50,000 loan at 4% and a $5,000 loan at 10% should pull the blended rate much closer to 4% than a simple average of 4% and 10% would suggest.
Does federal consolidation use exactly this formula?
Yes — per Federal Student Aid, the new fixed rate on a federal consolidation loan is the weighted average of the rates being consolidated, rounded up to the next one-eighth of one percent.
Can I use this for more than three loans?
Run it in two passes — blend the first group, then treat that result as one loan’s rate in a second pass, weighted by that group’s total balance.
