Blended Hourly Rate Calculator
Mixing pay rates or billing rates? Enter up to four hourly rates with their hours to get one weighted average — your blended hourly rate. Works for overtime weeks, consulting team quotes, and onsite/offshore staffing blends.
The blended hourly rate formula
Each rate is weighted by the hours worked at it, so a rate covering 90 hours moves the blend far more than one covering 10. Total pay divided by total hours always equals the blended rate — a quick way to sanity-check any payroll or invoice.
Three common uses
1. Overtime pay (blended overtime rate)
A worker earning $25/hr for 40 regular hours and $37.50/hr (time-and-a-half) for 10 overtime hours earns $1,375 for 50 hours — a blended rate of $27.50/hr. Employees use this to see what a heavy-overtime schedule really pays; employers use the weighted-average method to set the FLSA regular rate when someone works two jobs at different rates.
2. Consulting and agency billing
Clients prefer one number. A team quoting a partner ($400/hr × 10 hrs), a senior consultant ($200/hr × 40 hrs), and an analyst ($120/hr × 50 hrs) bills $18,000 over 100 hours — a blended rate of $180/hr. Quoting the blend simplifies the proposal while preserving your margin math.
3. Onsite / offshore staffing
An onsite engineer at $95/hr for 20 hours plus an offshore team at $30/hr for 80 hours delivers 100 hours for $4,300 — a blended rate of $43/hr. This is the number to compare across vendors, since headline offshore rates hide the onsite hours every project needs.
Learn more about blended hourly rates
- The ultimate guide to blended hourly & overtime rates — the full walkthrough.
- Blended overtime for two pay rates — the FLSA weighted-average method, step by step.
- FLSA regular rate rules — how bonuses and shift differentials factor in.
- How to calculate a blended rate for consulting — team, agency & onshore/offshore examples.
Frequently asked questions
What is a blended hourly rate?
A blended hourly rate is the weighted average of two or more hourly rates, weighted by the hours worked or billed at each rate. It answers the question: if all these hours were paid at one single rate, what would that rate be?
How do I calculate a blended overtime rate?
Use this tool as a blended overtime rate calculator: enter your regular hours at your base rate as Rate 1, and your overtime hours at your overtime rate (usually 1.5 × base) as Rate 2. The result is your blended rate for the week — total pay divided by total hours.
How is a blended rate used under the FLSA for two jobs?
When an employee works two different jobs at different rates for the same employer, the FLSA default is to compute the regular rate as the weighted average of both rates — exactly what this calculator does. Overtime premium is then owed at 1.5 × that blended regular rate. Employers should confirm specifics with counsel, since agreements under 29 CFR 778.419 can allow rate-in-effect calculations instead.
How do consulting firms calculate a blended rate?
Agencies and consulting firms quote one blended rate for a mixed team: multiply each person's hourly rate by their estimated hours, sum those amounts, and divide by total hours. A partner at $400/hr for 10 hours plus analysts billing a combined 90 hours at $120/hr blends to $148/hr.
How do I calculate a blended rate for onsite and offshore teams?
Enter your onsite rate and onsite hours as one row and your offshore rate and hours as another. The blended rate shows the true cost per delivered hour of the mixed team — the key number for comparing outsourcing proposals.
Blending interest rates instead?
The same weighted-average math applies to debt. Combine up to four loan balances and rates to find your true blended interest rate.