Weighted Average Interest Calculator

Step 1: Enter Loan Info

Loan #1

Balance

Interest 

Loan #2

Balance

Interest 
WEIGHTED AVERAGE INTEREST RATE
$21,124
Total Savings
Before Consolidation: $333
After Consolidation: $222
Savings: $222
Go Back
If you refinance $30,000 of student loans at a 3.25% interest rate with a 10-year repayment term, you can save $4,789 over the life of your loan.

Compare The Best Student Loan Refinance Rates For 2020

Lender
APR
Minimum Credit
2.26% – 6.29%
650

Overview

KeyValue
Variable Rates:2.26% – 6.29%
Fixed Rates:2.99% – 6.28%
Minimum Credit Score:650
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000 ($10,000 in CA)

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states
Hardship Deferment:Yes
Co-signer Option:Yes

1.99% – 5.49%
650

Overview

KeyValue
Variable Rates:1.99% – 5.34%
Fixed Rates:2.98% – 5.49%
Minimum Credit Score:650
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5-20 years
Borrower Residency:All States except KY or NV
Hardship Deferment:Yes
Co-signer Option:No
2.39% – 6.01%
680

Overview

KeyValue
Variable Rates:2.39% – 6.01%
Fixed Rates:2.79% – 5.99%
Minimum Credit Score:680
Minimum Income:$35,000
Fees:None
Minimum Loan Amount:$15,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes

1.89% – 6.66%

660

Overview

KeyValue
Variable Rates:1.89% – 6.66%
Fixed Rates:2.63% – 6.63%
Minimum Credit Score:660
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5 – 20 years
Borrower Residency:All states
Hardship Deferment:Varies
Co-signer Option:Yes

1.89% – 6.00%
700

Overview

KeyValue
Variable Rates:1.89% – 5.90%
Fixed Rates:2.80% – 6.00%
Minimum Credit Score:700
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes

1.95% – 3.85%

660

Overview

KeyValue
Overall Rate:1.95% – 3.85%
Variable Rates:
Fixed Rates:1.95% – 3.85%
Minimum Credit Score:None
Minimum Income:None
Fees:None
Minimum Loan Amount:$25,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15 years
Borrower Residency:Must live near a branch in California; New York City; Boston; Greenwich, Connecticut; Palm Beach, Florida; Portland, Oregon; or Jackson, Wyoming
Hardship Deferment:No
Co-signer Option:Yes
1.97% – 8.77%
680

Overview

KeyValue
Variable Rates:1.97% – 8.54%
Fixed Rates:2.99% – 8.77%
Minimum Credit Score:680
Minimum Income:$24,000
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states, except ME, ND, NV, RI, WV
Hardship Deferment:Yes
Co-signer Option:Yes

Checking Your Rate Doesn’t Affect Your Credit Score
Disclosures: Earnest | ELFI | Laurel Road | LendKey | SoFi | Splash

How does this weighted average interest calculator work?

This weighted average interest calculator is easy to use. This weighted average interest rate calculator automatically calculates the weighted average interest rate on your student loans. The weighted average interest rate is the interest rate used for federal student loan consolidation and is also your effective interest rate for your student loans. Here’s how the weighted average interest calculator works:

  1. For each of your student loans, enter your student loan balance and interest rate.
  2. You’re all done

The weighted average effective interest rate calculator will calculate your total student loan balance and your weighted average interest rate based on your number of student loans. You can use this weighted average interest calculator for all your student loans or simply for your federal student loans for purposes of federal student loan consolidation.

How do you calculate weighted average interest rate?

To calculate weighted average interest rate with this weighted average interest rate calculator, all you need is your student loan balance and interest rate for each student loan. The weighted average interest calculator then calculates the weighted average interest rate for you.

Let’s use an example. Let’s assume that you have three loans:

  • $10,000 loan at 7% interest rate
  • $15,000 loan at 9.5% interest rate
  • $18,000 loan at 11.2% interest rate

So, how do we calculate the weighted average interest rate of these three loans? Here is how:

1. Multiply each loan amount by its respective interest rate.

  • $10,000 * 7% = $700
  • $15,000 * 9.5% = $1,425
  • $18,000 * 11.2% = $2,016

2. Add the values together to calculate the loan weight factor

$700 + $1,425 + $2,016 = $4,141

3. Add the three loan amounts together

We can determine the total loan balance by adding all three loans:

$10,000 + $15,000 + $18,000 = $43,000

So, the total loan balance is $43,000.

4. Divide the total loan weight factor by the total loan amount

$4,141 / $43,000 = 9.63%

Therefore, the weighted average interest rate of the three loans is 9.63%.

If you consolidate federal student loans into a Direct Consolidation Loan, then the resulting interest rate is equal to a weighted average interest rate of your federal student loans, rounded up to the nearest 1/8%. In this hypothetical, the weighted average interest rate would be rounded up to 9.75%.

How is your weighted average interest used?

Your weighted average interest rate is used in several ways.

First, your weighted average interest rate can tell you how much interest you are paying overall for your loans. Rather than have to calculate each individual loan, the weighted average interest rate can tell you quickly what your effective interest rate is and how much your loans will cost you.

Second, your weighted average interest rate is used for a Direct Consolidation Loan when you consolidate student loans.

As this weighted average interest calculator shows, your weighted average rate, rounded to the nearest 1/8%, is your new interest rate with a Direct Consolidation Loan.

What is the average interest on a personal loan?

The interest rate on a personal loan is based on several factors and typically ranges from approximately 5% – 36%. Online lenders typically offer the lowest personal loan rates. If you have a strong credit profile and income, you may be well positioned to be approved for a personal loan. Lenders evaluate several factors when deciding if you are eligible for a personal loan. These factors may include your credit score, income, debt-to-income ratio, monthly cash flow and other factors.

What is the difference between “average” interest rate and “weighted average” interest rate?

Average interest rate is simply the average of your interest rates. This means you simply add your interest rates together and divide by the number of interest rates. The problem is the average interest rate is not reflective of how much interest you are actually paying. That’s why you need a weighted average interest rate calculator. When you calculate average interest rate over time, you will see that the weighted average interest rate is the more accurate calculation. This is because weighted average interest rate accounts for the relative size of each of your loans and assigns more “weight” to the interest rates with higher loan balances. Therefore, the weighted average interest rate is the more precise calculation of your effective interest rate. This is why this weighted average interest calculator is useful.

If I consolidate my student loans into a Direct Consolidation Loan, how is my interest rate calculated?

With a Direct Consolidation Loan, your interest rate is equal to a weighted average of the interest rates of your existing federal student loans, rounded up to the nearest 1/8%. Therefore, you will not receive a lower interest rate with federal student loan consolidation. With student loan consolidation, your interest rate will be either equal to or slightly higher than your weighted average interest rate.

Student loan consolidation enables you to combine your existing federal student loans into a single, Direct Consolidation Loan. You can analyze the difference between student loan consolidation and student loan refinancing with a student loan consolidation calculator. Unfortunately, private student loans cannot be consolidated into a Direct Consolidation Loan.

How do you calculate the average interest rate on multiple loans?

If you want to calculate the average interest rate on multiple loans, then this weighted average interest rate calculator will supply the answer. This is because the weighted average interest rate considers the interest rate on each of your loans, and then weights them by the size of the loan. Therefore, a weighted average of your loans is the effective interest rate that you are paying on your loans.

You can enter multiple loans in this weighted average interest rate calculator and determine automatically what is your weighted average interest rate.

What other student loan calculators are helpful?

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