Blended Labor Rate Calculator

Formula

The formula to calculate the Blended Labor Rate (BLR) is:

\[ \text{BLR} = \frac{\text{THR}}{\text{THW}} \]

Where:

$\text{BLR}$ is the blended labor rate ($/hour)
$\text{THR}$ is the total hourly rates ($)
$\text{THW}$ is 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.

Example Calculation

Let's assume the following values:

Total Hourly Rates (THR) = $1200
Total Hours Worked (THW) = 40 hours

Using the formula to calculate the Blended Labor Rate:

\[ \text{BLR} = \frac{1200}{40} = 30 \text{ dollars/hour} \]

The Blended Labor Rate is $30 per hour.