Debt Consolidation Formula
The Weighted APR formula helps you understand the average interest rate you're currently paying across all your debts, providing a crucial benchmark when considering a debt consolidation loan.
Formula
Copy the exact expression or work through it step by step below.
Weighted APR = Sum of (Balance x APR) / Total Balance Variables
APR
Weighted APR
The weighted apr value plugged into the debt consolidation calculation.
Bala
Balance
The balance value plugged into the debt consolidation calculation.
APR
APR
The apr value plugged into the debt consolidation calculation.
TB
Total Balance
The total balance value plugged into the debt consolidation calculation.
Step By Step
- 1
Set the baseline case with the real calculator inputs.
Debt Balance = $18,000, Weighted APR Percent = 22.0%, Current Monthly Payment = $650, New APR Percent = 11.5%
- 2
Translate rates, periods, and cash values onto the same footing before combining them.
Keep the debt consolidation assumptions consistent instead of mixing monthly and annual views.
- 3
Apply the formula and read the first calculator outputs, not just the headline assumption.
The calculator lands with monthly payment change at $166 and new consolidated payment at $484.
- 4
Run one changed scenario so the formula is stress-tested before it is trusted.
The debt consolidation calculator page is the fastest way to compare that second case.
Worked Example
Debt Consolidation sample case
Debt Balance
$18,000
Weighted APR Percent
22.0%
Current Monthly Payment
$650
New APR Percent
11.5%
Weighted APR = Sum of (Balance x APR) / Total Balance using debt balance $18,000, weighted apr percent 22.0%, current monthly payment $650, new apr percent 11.5%.
The calculator lands with monthly payment change at $166 and new consolidated payment at $484.
Common Variations
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Sources & References
- What is debt consolidation? — Consumer Financial Protection Bureau (CFPB)
- Weighted Average Interest Rate — Investopedia
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