Blended Team Rate Calculator
One hourly rate for a mixed team, weighted by hours.
What this calculator does
A weighted average, never a simple average of the rates. Roles left at zero hours drop out of the weighting.
Inputs and what they mean
- Currency
- — Amounts are shown in the currency you pick. No exchange rate is applied..
- Rate per hour — role 1
- — number value.
- Hours — role 1
- — number value.
- Rate per hour — role 2
- — number value.
- Hours — role 2
- — number value.
- Rate per hour — role 3
- — number value.
- Hours — role 3
- — number value.
- Rate per hour — role 4
- — number value.
- Hours — role 4
- — number value.
How to use it
- Enter your own figures — the calculator never fills in a rate, price or benchmark for you.
- Press Calculate to see the result.
- Read the formula, variables, assumptions and source below the result before you rely on it.
Formula
Blended rate = Σ(Rate of role i × Hours of role i) ÷ Σ(Hours of role i)
Worked example
Architect, two engineers and an analyst
The blend is weighted by the hours each role contributes.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
Results depend entirely on the figures you enter and are rounded for display. They are for general information and education, not professional advice.
Reference: OpenStax — Principles of Accounting, Volume 2: Managerial Accounting
Last reviewed:
Common questions
Formula, source and verification
A weighted average of the role rates entered, using hours as the weights.
The question it answers: What single hourly rate represents this mix of roles?
The formula
Blended rate = Σ(Rate of role i × Hours of role i) ÷ Σ(Hours of role i)
- ri — Rate of role i
- (currency/h). Hourly rate for that role.
- hi — Hours of role i
- (h). Hours that role contributes.
Units: Currency per hour; hours.
What kind of calculation this is
Deterministic formula. The same inputs always give the same answer. The maths is fixed and does not depend on judgement.
Method
A weighted average, never a simple average of the rates. Roles left at zero hours drop out of the weighting.
Assumptions built into the result
- Mathematical: All role rates are in the same currency and cover the same period.
Figures this calculator will never guess for you
- No default team mix or role rate is assumed.
Limitations
- A blended rate hides the mix: the same blend can come from very different teams.
Source and version
- Standard or reference
- Weighted average rate (OpenStax, Principles of Accounting Volume 2: Managerial Accounting — weighted average rates.)
- Published source
- OpenStax — OpenStax (CC BY)
- Formula version
- Version 1
- Verification
- Reviewed against the cited source on
- How much weight the source carries
- Academic
- Applies to
- Currency
- Amounts stay in the currency you choose; no exchange rate is applied.
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