Agency Blended Rate Calculator
Combine junior, mid and senior hours into one blended hourly rate for proposals — the weighted average clients actually pay.
How it works
Blended rate = Σ(role rate × role hours) ÷ Σ(role hours)
A blended rate is the hours-weighted average of every role on a job, expressed as a single number to quote. It is not the simple average of the rates: a project that leans on junior hours blends down toward the junior rate, while senior-heavy work blends up. Quoting one blended rate simplifies proposals, but only holds if the actual staffing mix matches the assumption — load more senior time than planned and the blended rate silently under-recovers.
Worked example
40 junior hours at $75, 30 mid at $125 and 15 senior at $200 bill $3,000 + $3,750 + $3,000 = $9,750 across 85 hours. The blended rate is 9,750 ÷ 85 ≈ $114.71 per hour.
Frequently asked questions
Is a blended rate just the average of the rates?
No — it is weighted by hours, not a plain average. A job that is mostly junior hours blends toward the junior rate; senior-heavy work blends higher. The mix of hours drives the number as much as the rates do.
Why quote a blended rate at all?
It simplifies proposals and billing to one number the client can reason about, instead of a rate card per role. The risk is that it only holds if your actual staffing matches the assumed mix.
What happens if the senior does more hours than planned?
The true cost mix shifts above the quoted blended rate, so you under-recover. Either track hours by role and reconcile, or set the blended rate off a conservative, senior-leaning mix.
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Educational estimate, not financial advice.