How accurate is the debt calculator?

Our calculator uses industry-standard amortization formulas and real-world settlement percentages. Results are estimates based on your inputs. Actual results vary based on creditor negotiations, payment timing, and individual circumstances.

Is my information secure?

Yes. We do not collect any personal information to use the calculator. Results are calculated in your browser. Contact information is only collected with explicit consent when you request expert help.

What is debt consolidation?

Debt consolidation combines multiple debts into a single loan, typically with a lower interest rate. This can reduce monthly payments and simplify your finances by having just one payment instead of many.

What is debt settlement?

Debt settlement involves negotiating with creditors to pay less than the full amount owed. While it can reduce total debt, it negatively impacts credit scores and forgiven debt may be taxable.

Which debt relief option is best for me?

The best option depends on your financial situation, credit score, and goals. Our calculator compares all options side-by-side. For personalized advice, consult with a debt relief expert who can review your specific circumstances.

How to Calculate Your Weighted Average APR

If you have multiple credit cards, you're probably paying different interest rates on each one. But what's your actual cost of debt? Your weighted average APR gives you the real answer—and it might be higher than you think.

Quick Answer: Your weighted average APR is your true interest rate across all credit cards, calculated by weighing each card's APR by its balance. This number determines whether debt consolidation makes financial sense.

What is Weighted Average APR?

Your weighted average APR isn't just the average of your credit card interest rates—it's a calculation that considers how much you owe on each card. Cards with higher balances have more "weight" in the calculation because they represent a bigger portion of your total debt.

The Formula:

Weighted APR = (Balance₁ × APR₁ + Balance₂ × APR₂ + ...) ÷ Total Balance

This weighted calculation gives you a much more accurate picture of what you're actually paying in interest across all your debt.

Why Your Weighted APR Matters

Understanding your weighted APR is crucial for making smart financial decisions:

Consolidation decisions: You need to beat your weighted APR to save money with a personal loan
Payoff strategy: Helps you prioritize which debts to tackle first
Budget planning: Shows your true cost of carrying debt month to month
Progress tracking: As you pay down high-APR cards, your weighted APR should improve

Reality Check: Many people focus on their lowest APR card when considering consolidation, but your weighted APR is often 5-10 percentage points higher than your lowest rate.

Step-by-Step Calculation

Let's walk through the calculation with a real example:

Credit Card	Balance	APR	Balance × APR
Chase Freedom	$3,500	18.24%	$638.40
Capital One Venture	$8,200	24.99%	$2,049.18
Citi Double Cash	$2,100	21.24%	$446.04
TOTALS	$13,800	—	$3,133.62

Final Calculation:

Weighted APR = $3,133.62 ÷ $13,800

Weighted APR = 22.71%

Real-World Examples

Lower Weighted APR Example

Card A: $1,000 @ 15.99%
Card B: $500 @ 28.99%
Weighted APR: 20.32%

Most debt is on the lower-rate card

Higher Weighted APR Example

Card A: $500 @ 15.99%
Card B: $1,000 @ 28.99%
Weighted APR: 24.66%

Most debt is on the higher-rate card

Common Calculation Mistakes

❌ Using Simple Average

Don't just add up APRs and divide by number of cards. This ignores balance weighting.

❌ Including Promotional Rates

Use the regular APR, not temporary 0% promotional rates that will expire.

❌ Forgetting Different Transaction Types

Cash advances and balance transfers often have different (higher) APRs than purchases.

Practical Applications

Using Weighted APR for Consolidation

Your weighted APR is the benchmark for evaluating consolidation loans. Any loan with an APR lower than your weighted APR will save you money.

Consolidation Decision Example:

Your weighted APR: 22.71%
Personal loan offer: 16.99%
Annual savings: $794 (on $13,800 debt)
Decision: Consolidate!

Optimizing Your Payoff Strategy

Your weighted APR helps you track progress. As you pay off higher-rate cards first (avalanche method), your weighted APR should decrease over time.

Progress Tracking:

Month 1 weighted APR: 22.71%
Month 6 weighted APR: 20.45% (after paying off highest APR card)
Month 12 weighted APR: 18.89% (continued progress)

When to Recalculate

Recalculate your weighted APR when:

You pay off a credit card completely
You open a new credit card or get a rate change
You're considering debt consolidation
Every 3-6 months to track progress
Before making major debt payoff decisions

Your Next Steps

Take Action Today:

Calculate your current weighted average APR
Compare it to personal loan rates you qualify for
If consolidation makes sense, use our calculator to see your savings
Set up a system to recalculate quarterly
Track your progress as you pay down debt

Ready to Lower Your Weighted APR?

Use our calculator to see if debt consolidation can reduce your overall interest rate and save you money.

Calculate Your Savings Now