Enter the total hourly rates and the total hours worked into the calculator to determine the blended labor rate. The blended labor rate is the average rate per hour when considering multiple employees or contractors with different rates.
Blended Labor Rate Formula
The following formula is used to calculate the blended labor rate.
BLR = THR / THW
Variables:
- BLR is the blended labor rate ($/hour)
- THR is the total hourly rates ($)
- THW is the total hours worked
To calculate the blended labor rate, divide the total hourly rates by the total hours worked.
What is a Blended Labor Rate?
A blended labor rate is the weighted average hourly rate for a group of workers. It is commonly used in project management and budgeting to estimate the overall labor costs when different team members have varying hourly rates. The blended rate provides a simplified figure that represents the average cost of labor per hour for the entire team or project.
How to Calculate Blended Labor Rate?
The following steps outline how to calculate the Blended Labor Rate.
- First, determine the total hourly rates (THR) by adding up the hourly rates of all workers or contractors.
- Next, determine the total hours worked (THW) by adding up all the hours worked by the workers or contractors.
- Next, gather the formula from above = BLR = THR / THW.
- Finally, calculate the Blended Labor Rate (BLR) in dollars per hour.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Total hourly rates (THR) = $500
Total hours worked (THW) = 40 hours
