Managing multiple loans can be overwhelming, but our Weighted Average Loan Calculator simplifies the process. By inputting the principal, interest rate, and duration of each loan, you can easily calculate the weighted average interest rate and the minimum monthly payment required to satisfy your total debt.

How to Use the Weighted Average Loan Calculator

This Weighted Average Loan Calculator helps you combine multiple loans into a single weighted average interest rate and repayment estimate. It’s especially useful if you’re exploring loan consolidation, student loan refinancing, or comparing blended borrowing costs. Below is a breakdown of the inputs and outputs so you can understand how the calculator works.

Inputs

1. Loan Name
   A simple label to identify each loan (e.g., “Car Loan,” “Student Loan A”). This helps keep multiple entries organized.
2. Balance ($)
   The current outstanding principal of the loan. Larger balances carry more weight in the weighted average calculation.
3. APR (Annualized %)
   The annualized interest rate (APR) of the loan. This is the yearly cost of borrowing expressed as a percentage, including compounding.
4. Remaining Term (Months)
   The number of months left until the loan is fully paid off. This value is used to calculate the weighted average term across all loans.
5. Consolidation Term (Months)
   An optional input if you want to estimate a new blended monthly payment. Enter the term you’d expect for a consolidation loan (e.g., 120 months = 10 years).

Outputs

1. Total Balance
   The sum of all loan balances you entered. This represents the total amount of debt across all loans.
2. Weighted Average Interest Rate (WAIR)
   The blended APR, calculated by weighting each loan’s interest rate by its balance. This shows the effective average interest rate if your loans were combined into one. This is also referred to as cost of debt.
3. Weighted Average Term
   The balance-weighted average of the remaining months across all loans. Loans with larger balances contribute more to this figure.
4. Blended Monthly Payment (Estimate)
   An estimated monthly payment if you consolidated all loans into one using the weighted average interest rate and your chosen consolidation term. This uses standard loan amortization formulas.
5. Total Interest (Estimate)
   The total amount of interest you would pay over the full consolidation term, assuming a fixed rate and no extra payments.

Why This Matters

By using this calculator, you can see:

• Your true average borrowing cost across multiple loans (your cost of debt).
• How consolidation could affect your monthly payments.
• The long-term interest savings (or costs) when blending loans into one.

This tool is especially valuable for people managing student loans, personal loans, or multiple credit accounts who want to simplify payments or evaluate refinancing options.