Free tool for agencies that staff work with several roles
Agency blended hourly rate and margin calculator
Blended rate = Σ(hours × rate) ÷ Σ hours. In the example, 20 hours at $95, 40 hours at $65, 30 hours at $40 and 10 hours at $50 cost $6,200 for 100 hours, a blended $62.00 an hour. Billed at $125 an hour the work brings $12,500, a margin of $6,300 (50.4%), or $63.00 an hour.
Last updated 2026-11-12.
- Blended cost per hour
- Total hours
- Total cost
- Billed at the client rate
- Margin
- Margin % of billed
- Margin per hour
Check the inputs: hours and costs not negative, at least one role with hours, billed rate above 0.
Take it with you
Example scenarios
Three sets of example inputs worked through the same formulas as the calculator above. They are illustrations, not averages or statistics.
| Scenario | Inputs (hours × cost per hour, billed rate) | Blended cost per hour | Total cost | Margin | Margin % |
|---|---|---|---|---|---|
| Low | 10 h × $80, 30 h × $55; billed $95 | $61.25 | $2,450 | $1,350 | 35.5% |
| Typical | 20 h × $95, 40 h × $65, 30 h × $40, 10 h × $50; billed $125 | $62.00 | $6,200 | $6,300 | 50.4% |
| High | 60 h × $110, 120 h × $75, 80 h × $45, 20 h × $60; billed $150 | $72.86 | $20,400 | $21,600 | 51.4% |
Method: Blended cost per hour = Σ(role hours × role cost per hour) ÷ Σ hours; billed = total hours × billed rate; margin = billed − cost; margin % = margin ÷ billed; markup % = margin ÷ cost. Figures checked against the same formulas on 2026-11-12.
How the calculator works
Most agency work mixes people: a senior lead for a few hours, a mid-level person for most of it, a junior for production. A plain average of their rates is wrong whenever the hours differ. The blended rate weights each role's rate by its hours: multiply hours by rate for every role, add those up and divide by the total hours.
Enter what an hour of each role costs you, pay plus a share of overhead, and the single rate you bill the client. The calculator shows the blended cost per hour, the total cost, what the hours bill at your rate, and the margin in dollars, percent and per hour. You can also enter billing rates instead of costs to get a blended billing rate; then ignore the margin lines.
Worked example
A campaign takes 20 senior hours at $95, 40 mid-level hours at $65, 30 junior hours at $40 and 10 project-management hours at $50. The cost is 1,900 + 2,600 + 1,200 + 500 = $6,200 for 100 hours, so the blended cost is $62.00 an hour. A plain average of the four rates would be $62.50, close here only because the hours happen to balance out.
Billed at $125 an hour, 100 hours bring $12,500. The margin is $12,500 − $6,200 = $6,300, which is 50.4% of the billed amount and $63.00 on every hour.
Caveats
The result is only as good as the hours split. If the senior lead ends up doing twice the hours you planned, the blended cost rises and the margin falls even though no rate changed. Check the split against the logged hours of a similar past project. Cost per hour should include overhead, or the margin looks better than it is.
What this tool does not do
It works out one mix of roles and forgets everything when you close the page. It does not set your rates or know market rates; it is an estimate, not business advice. Retainersdesk, linked below, tracks client retainers; it does not work out blended rates.
Questions
How do you calculate a blended hourly rate?
Multiply each role's hours by its rate, add them up and divide by the total hours. $6,200 over 100 hours is $62.00.
Why not just average the rates?
A plain average treats a role with 10 hours the same as one with 40. The blended rate weights each rate by its hours.
Does this page store my rates?
No. The math runs in your browser; nothing is sent or saved.
Made by Bardach Technologies. We also make Retainersdesk, a separate workspace template for agencies that runs in Notion and shows which client retainer is over, close or on track this month and what is due in the next 7 days (USD 67.99, one-time purchase on Gumroad). Retainersdesk tracks hours against each client's retainer; it does not work out blended rates. This calculator is free and needs no sign-up; nothing is charged on this page. Get Retainersdesk on Gumroad (USD 67.99)