Calculate How Much You Spend on Interest Monthly

Average Debt Interest Rate Calculator

Are you uncertain how much you spend on interest each month, or what your blended interest rate is? Use this calculator to quickly figure out

  • your total debt balance
  • how much interest you pay on each debt
  • your total monthly interest expense
  • the average interest rate across all debts

You can then use this information to determine if it might be advantageous to shift some or all of your debts onto a credit card with a zero interest introductory period, or perhaps roll the debts into a single monthly payment via a debt consolidation loan.

For each debt, enter its name, remaining balance & interest rate. The monthly interest column will be calculated when you click on the calculator's submit button.

Debt Name Remaining Balance Interest Rate Monthly Interest
Total Principal: Monthly Interest:
Avg Interest Rate:


Figure Out Your Options

Should you consolidate your debts or take advantage of a low-interest introductory period on a credit card? Use the above calculator to figure out your blended interest rate. If you have a large debt with a rather low interest rate, exclude it from the above calculation so you can isolate the higher interest debts. Doing this will enable you to see the cost of the higher interest debt, which will enable you to seek options to reduce the monthly interest expense.

Money on a String.

See the Real Cost of Debt

The above calculator also has a second tab which shows the current interest rates on savings accounts. This further shows how expensive debt is because most forms of consumer debt charge a far higher rate of interest than banks pay savers AND savers get taxed on interest income they earn at their ordinary tax rates. The table below shows the full cost of $10,000 of debt at various rates of interest. While different consumer debt types typically have different amounts, we kept the amount column constant to show the absolute difference in cost per Dollar earned or borrowed. We also presumed interest-only payments on the debt & a 25% tax rate on income.

Account Type Amount Rate Annual Interest After Tax Income Required Income to Cover Interest Expense
Big Bank Savings $10,000 0.01% $1 $0.75 -
High-yield Savings $10,000 1.00% $100 $75.00 -
Certificate of Deposit $10,000 1.40% $140 $105.00 -
New Car, Good Credit $10,000 3.65% $365 - $486.67
Used Car, Bad Credit $10,000 8.90% $890 - $1,186.67
Credit Card $10,000 13.76% $1,376 - $1,834.67
Personal Loan, Good Credit $10,000 14.5% $1,450 - $1,933.33
Personal Loan, Bad Credit $10,000 30.0% $3,000 - $4,000
Payday Loan $10,000 400% $40,000 - $53,333.33