Blended rate
also known as blended hourly 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.
Set it from your real team mix and target utilisation; set it too low and even busy, fully-booked projects still lose money.
Blended rate = total billable cost (or target revenue) ÷ total billable hours
Weight by each role's hours: Σ(rate × hours) ÷ Σ hours.
Blended rate calculator
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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.