Calculate a blended labor rate, total labor cost, or total hours worked by selecting a task and entering the two displayed values.
Blended Labor Rate Formula
The blended labor rate is the average hourly labor cost across multiple workers, roles, or pay rates. This calculator uses the relationship between total labor cost, total hours worked, and the blended hourly rate.
- BLR = blended labor rate, in dollars per hour
- THR = total labor cost, meaning total labor cost in dollars
- THW = total hours worked
The calculator can also rearrange the formula for the value you select in Solve for.
- To calculate blended labor rate: divide total labor cost by total hours worked.
- To calculate total labor cost: multiply the blended labor rate by total hours worked.
- To calculate total hours worked: divide total labor cost by the blended labor rate.
Common Blended Labor Rate Inputs
These tables explain input scope and use cases; they do not provide market-rate benchmarks. Actual costs depend on industry, location, benefits, payroll taxes, and overhead.
| Scenario | Typical Use | What the Blended Rate Represents |
|---|---|---|
| Project team | Estimating project labor cost | Average hourly cost across all team members |
| Department | Budgeting and internal reporting | Average hourly cost for all labor in the department |
| Contract bid | Pricing work for a client | Single hourly rate used instead of separate role-based rates |
| Input | Include | Avoid |
|---|---|---|
| Total labor cost | Total labor cost for the same time period | Mixing weekly cost with monthly hours |
| Total hours worked | All hours tied to that labor cost | Counting only one role when cost includes several roles |
| Blended labor rate | Average cost per hour | Treating it as every worker’s actual pay rate |
Example Calculations
Example 1: Calculate blended labor rate
You have $12,000 in total labor cost and 300 total hours worked.
The blended labor rate is $40.00 per hour.
Example 2: Calculate total labor cost
You know the blended labor rate is $55 per hour and the team worked 160 hours.
The total labor cost is $8,800.00.
FAQ
What does blended labor rate mean?
A blended labor rate is the average hourly labor cost across more than one worker, role, or pay rate. Instead of pricing each person separately, you use one average rate for the group.
Is blended labor rate the same as an employee’s hourly wage?
No. An employee’s hourly wage is the rate paid to one person. A blended labor rate is an average across multiple labor rates. It may also include loaded costs if your total labor cost includes benefits, payroll taxes, insurance, or overhead.
Should overtime be included in the calculation?
Include overtime if it is part of the total labor cost and the hours worked for the period you are measuring. The key is consistency: the cost and the hours must cover the same workers and the same time period.
