{
  "slug": "portfolio-refinance-blended-rate",
  "title": "Portfolio Refinance Blended Rate Calculator",
  "heading": "Portfolio Refinance Blended Rate Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/portfolio-refinance-blended-rate",
  "summary": "Weighted-average rate across multiple loans and whether a blanket refi saves money.",
  "description": "Investors with several properties financed at different rates and balances often want to know their true blended cost of debt, and whether consolidating into a single portfolio or blanket loan actually saves money once new closing costs are factored in. This calculator takes up to a handful of existing loan balances and rates, computes the weighted-average blended rate across the whole portfolio, and compares the current blended annual interest cost against a proposed new portfolio loan's rate and closing costs to show the breakeven period and dollar savings over your intended hold. Blanket loans and portfolio DSCR products can simplify servicing and sometimes offer a lower rate through economies of scale, but they usually cross-collateralize every property in the pool, meaning a problem with one property can affect your ability to sell or refinance any of them individually — a real structural tradeoff worth weighing against the rate savings this calculator quantifies.",
  "formula": "Blended rate = Σ(balance × rate) ÷ Σ(balance); Current annual interest = Σ(balance × rate); New annual interest = Total balance × new rate; Breakeven months = Closing costs ÷ (monthly interest savings).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=portfolio-refinance-blended-rate",
  "inputs": [
    {
      "id": "balance1",
      "label": "Loan 1 balance",
      "kind": "number",
      "hint": null,
      "default": 180000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rate1",
      "label": "Loan 1 rate",
      "kind": "number",
      "hint": null,
      "default": 7.5,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "balance2",
      "label": "Loan 2 balance",
      "kind": "number",
      "hint": null,
      "default": 220000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rate2",
      "label": "Loan 2 rate",
      "kind": "number",
      "hint": null,
      "default": 6.75,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "balance3",
      "label": "Loan 3 balance",
      "kind": "number",
      "hint": null,
      "default": 150000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rate3",
      "label": "Loan 3 rate",
      "kind": "number",
      "hint": null,
      "default": 8,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "newRate",
      "label": "Proposed blanket refi rate",
      "kind": "number",
      "hint": null,
      "default": 7,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "refiClosingCosts",
      "label": "New loan closing costs",
      "kind": "number",
      "hint": null,
      "default": 12000,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "blendedRate",
      "label": "Current blended rate",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "annualSavings",
      "label": "Annual interest savings if refinanced",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "breakevenMonths",
      "label": "Breakeven period on closing costs",
      "format": "number",
      "hint": null,
      "primary": false
    },
    {
      "id": "totalBalance",
      "label": "Total portfolio balance",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "currentAnnualInterest",
      "label": "Current total annual interest",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Loan 1 balance: 180000 $",
      "Loan 1 rate: 7.5 %",
      "Loan 2 balance: 220000 $",
      "Loan 2 rate: 6.75 %",
      "Loan 3 balance: 150000 $",
      "Loan 3 rate: 8 %",
      "Proposed blanket refi rate: 7 %",
      "New loan closing costs: 12000 $"
    ],
    "outputs": [
      "Current blended rate: 7.34%",
      "Annual interest savings if refinanced: $1,850",
      "Breakeven period on closing costs: 78",
      "Total portfolio balance: $550,000",
      "Current total annual interest: $40,350"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter loan 1 balance ($).",
      "Enter loan 1 rate (%).",
      "Enter loan 2 balance ($).",
      "Enter loan 2 rate (%).",
      "Enter loan 3 balance ($).",
      "Enter loan 3 rate (%).",
      "Enter proposed blanket refi rate (%).",
      "Enter new loan closing costs ($).",
      "Read your current blended rate on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "balance1": 108000,
        "rate1": 4.5,
        "balance2": 132000,
        "rate2": 4.05,
        "balance3": 90000,
        "rate3": 4.8,
        "newRate": 4.2,
        "refiClosingCosts": 7000
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "balance1": 180000,
        "rate1": 7.5,
        "balance2": 220000,
        "rate2": 6.75,
        "balance3": 150000,
        "rate3": 8,
        "newRate": 7,
        "refiClosingCosts": 12000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "balance1": 288000,
        "rate1": 12,
        "balance2": 352000,
        "rate2": 10.8,
        "balance3": 240000,
        "rate3": 12.8,
        "newRate": 11.200000000000001,
        "refiClosingCosts": 19000
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What's the main risk of a blanket/portfolio loan?",
      "a": "Cross-collateralization — all properties in the pool typically secure the entire loan, so selling one property usually requires a partial release (with specific paydown terms in the loan documents) rather than a simple standalone sale, and a default or covenant breach tied to one property can put the whole portfolio at risk."
    },
    {
      "q": "Does a lower blended rate always justify refinancing?",
      "a": "Only after accounting for closing costs and any prepayment penalties on the existing loans, which is why this calculator computes a breakeven period. If you plan to sell or restructure within that breakeven window, the refi likely doesn't pay for itself despite the lower rate."
    },
    {
      "q": "Can I include more than three loans in this analysis?",
      "a": "This calculator handles three loans for a quick estimate; for a larger portfolio, sum your total balance and compute a weighted-average rate manually the same way — multiply each balance by its rate, sum those products, and divide by total balance."
    },
    {
      "q": "Are portfolio loan rates usually better than individual loans?",
      "a": "Sometimes, due to economies of scale and lower per-loan underwriting cost for the lender, but not always — DSCR pricing on individual properties has gotten competitive, and the cross-collateralization risk of a blanket loan is a real cost that a slightly better rate doesn't automatically offset."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/dscr-loan-sizing",
    "https://www.revenuelab.fyi/toolbox/brrrr-refinance-capture",
    "https://www.revenuelab.fyi/toolbox/hard-money-bridge-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Portfolio Refinance Blended Rate Calculator (https://www.revenuelab.fyi/toolbox/portfolio-refinance-blended-rate)"
}