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Blended rate calculator

Turn your team mix and cost into a single blended hourly rate to quote from.

Blended rate calculator

Plug in your numbers - it updates as you type.

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hrs
Blended rate$110/hr
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Definition

What is blended rate?

A single average hourly rate across a mixed team (junior to senior), used to simplify pricing and quoting.

For example, rather than quoting a client $150/hour for a senior strategist and $70/hour for a junior designer, an agency might quote one blended rate of $110/hour for the whole team. The client gets a simpler number, and the agency still covers its mix of seniorities.

Why it matters to agencies: a blended rate makes quoting faster and proposals easier to read, while smoothing out who actually does the work. Set it carefully - from your real team mix and utilisation - and it protects margin; set it too low and every project quietly loses money.

How to calculate

Blended rate = total billable cost (or target revenue) ÷ total billable hours

Weight by each role's hours: Σ(rate × hours) ÷ Σ hours.

What good looks like

Set it from your real team mix and target utilisation; set it too low and even busy, fully-booked projects still lose money.

Questions

Common questions

What is a blended rate?

A single average hourly rate across a mixed team (junior to senior), used to simplify pricing and quoting.

How do you calculate a blended rate?

Divide total billable cost or target revenue by total billable hours, weighting each role by the hours it contributes.

When should you use a blended rate?

When you want simple quotes, or when a project mixes seniorities and itemising every rate adds friction without adding clarity.

What is the difference between a blended rate and value-based pricing?

A blended rate still prices by time; value-based pricing prices by the outcome delivered, regardless of the hours it takes.

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Forge builds your rate tracker and looks after it - tracking blended rate live for your whole agency, built around the tools you already use. No spreadsheets, no code on your side.