Add up the interest charge for each liability, divide this figure by the
total liabilty...

So if you've got £100 at 5%, and £200 at 7% the effective rate is
(5+14)/300, which is 6 and a bit.

Sam

"GK" wrote:

how do you calculate weighted average effective interest rate for small
businesses who have multiple number of overdrafts, overdrafts and other
liabilities.