Weighted average interest rate calculator
Before you decide to consolidate or refinance multiple student loans, you’ll want to figure out what your debt as a whole is costing you. That number — your weighted average interest rate — will help you compare money-saving options.
If you owe one student loan for $10,000 at an interest rate of 4% and another loan for $20,000 at 8%, you owe $30,000. The average interest rate would be 6%. But the weighted average interest rate — which takes into consideration the balance you owe at each interest rate — would be 6.67%.
How is your weighted average interest rate used?
If you consolidate multiple federal student loans into a single loan, your new loan will carry an interest rate that is the weighted average of your current loans rounded up to the nearest one-eighth of 1 percent. The repayment term is determined by the total amount you owe. The weighted average interest rate calculator above will estimate your new direct consolidation loan payment.
If you have good credit, you can refinance both federal loans and private loans through a private lender. Use the weighted average interest rate produced by the calculator above to shop and compare student loan refinancing offers when exploring whether it’s a good fit for you.
Other student loan calculators
Student loan refinance calculator: Use this calculator to compare your current loan payment or multiple payments with a refinanced student loan.
Student loan consolidation calculator: Use this calculator to compare your payments under federal loan consolidation plans with your current bills.
Discretionary income calculator: Use this calculator to determine what you would pay under federal income-driven repayment plans.
Student loan calculator: Use this calculator to determine the monthly payment on new student loans you take out, federal or private.