Weighted Average Interest Rate Calculator

This simple Weighted Average Interest Rate Calculator allows student loan borrowers to calculate the weighted average interest rate of their student loans.

A weighted average interest rate is used when consolidating federal student loans with a Direct Consolidation Loan. For a Direct Consolidation Loan, the weighted average of the interest rates of all loans will be rounded up to the nearest one-eighth of a percentage point.

Weighted average interest rate
Total loan balance

Weighted Average Interest Rate Calculator FAQs

1. I put all my loans into the calculator and got a result. Will this be my new interest rate with a Direct Consolidation Loan?

Maybe. Assuming you inputted all of your information correctly, it should be close.

The actual value might be slightly higher as the interest rate is rounded up to the nearest one-eighth of one percent.

2. What’s the difference between an “average” and a “weighted average”?

Great question! While these values may be similar or even the same in some cases, a weighted average for student loans takes into account the principal balance of each loan in addition to the interest rate.

Here’s an example:

Loan 1: $10,000, 3.00%

Loan 2: $50,000, 5.00%

The average interest rate (with no weighting) for these two loans would be 4.00%.

However, the weighted average interest rate would be 4.67%. That’s a big difference!

Note that if these loans were used to apply for a Direct Consolidation Loan, the 4.67% interest value would be rounded up to 4.75%.

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print, understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.