A blended rate is the weighted average interest rate of multiple loans combined into a single one. It's calculated based on the balances and interest rates of the original loans, giving a simplified view of the overall cost of your debt when consolidating. This concept is often used when refinancing or consolidating loans, and provides an average interest rate that takes into account the relative size of each individual loan.

A blended rate is calculated using the balances and interest rates of the original loans. For each loan, you multiply the loan balance by its interest rate, then add these products together. This sum is then divided by the total balance of all the loans. This calculation provides the weighted average interest rate, or the blended rate, of the consolidated loan.

Blended rates are typically used when considering the refinancing or consolidation of multiple loans into one. They provide an overview of the average interest rate you're currently paying across your debts.

The loan balance directly impacts the blended rate as it's used to weight the individual interest rates. Larger loan balances will have a greater impact on the blended rate than smaller ones.

A blended rate can apply to any scenario where you're consolidating multiple debts into one new loan. This could include student loans, personal loans, or auto loans, among others.