Utilization & Capacity
Blended Rate
Agency glossary · Updated July 2026
Definition
A blended rate is a single average hourly rate an agency charges across a mixed team, instead of billing each role at its own rate. It simplifies quoting by combining junior, mid, and senior time into one number weighted by how much each contributes.
Formula
Total fee / total hours across all rolesWhy it matters
Blended rates make proposals simpler and hide your internal cost structure from the client. The risk is that a project skewing to senior time can quietly lose money at the blended rate.
Check the blended rate against the actual mix of hours on delivered work, not the mix you assumed when quoting.
Related terms
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