Billing & utilisation
Blended rate calculator
Quote one number for a mixed team without giving away your senior hours. The blended rate is the hours-weighted average.
- Blended rate
- ₹1,740
- Engagement value
- ₹3,48,000
- Total hours
- 200h 0m
Runs entirely in your browser — nothing you type is sent or stored. Indicative arithmetic, not legal, payroll or tax advice.
The formula
- Engagement value = Σ (role hours × role rate)
- Blended rate = engagement value ÷ total hours
When to quote blended
A blended rate simplifies procurement conversations: one number, one line on the purchase order, no debate about how many senior hours the project deserves. It works when you control the staffing mix. It backfires when the client controls it — if they can demand more senior time at the same blended rate, the mix shifts against you and the margin quietly disappears.
Protect the assumption in the statement of work: state the intended mix (for example 30% senior, 50% mid, 20% specialist) and reserve the right to requote if actuals drift beyond an agreed band.
Watching the mix during delivery
The blended rate you quoted is only real if the delivered mix matches the planned one. Track hours by role against the plan while the project runs — a project quoted at 30% senior time that is actually consuming 50% senior time is losing money in real time, and no month-end report will catch it early enough.
Stop calculating this by hand
Workclave attributes every session to a person and project, so the delivered seniority mix is visible while the project runs — not after the margin is gone.
Blended rate calculator — common questions
Is a blended rate the same as an average of my rates?
No. It is weighted by hours. Averaging ₹2,500 and ₹1,200 gives ₹1,850, but if 80% of the hours are at ₹1,200 the blended rate is about ₹1,460. The unweighted average overstates what mixed work earns.
Should internal QA and PM hours go into the blend?
If the client pays for them as part of delivery, yes — give them a role and a rate. If they are overhead your fee absorbs, keep them out of the quote but track them anyway; they belong in your effective-rate and margin analysis.
How do I stop blended-rate erosion mid-project?
Record hours by person and role as they happen, and review the mix weekly against the quoted assumption. Erosion caught in week 3 is a staffing correction; erosion discovered at invoicing is a write-off.
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