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120 hours across three rates
Role 1 is 120 an hour for 20 hours. Role 2 is 75 an hour for 60 hours. Role 3 is 45 an hour for 40 hours. Those rates are an example mix so you can see the weighted average. FAR 52.232-7 does not publish sample wages.
Role 1 hourly rate: 25% lower
Change role 1 hourly rate to 90 while keeping the other example values the same.
Role 1 hourly rate: 25% higher
Change role 1 hourly rate to 150 while keeping the other example values the same.
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Quick answer
What does the Agency blended rate calculate?
What hours-weighted rate do these roles average? This calculator uses role 1 hourly rate, role 1 hours, role 2 hourly rate, role 2 hours, role 3 hourly rate, and role 3 hours to estimate total pay divided by total hours immediately in your browser.
With the values currently entered, the result is $72.50 — per hour, weighted by hours. It also shows total pay, total hours, role 1 pay, role 2 pay, and role 3 pay.
How to use the Agency blended rate
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Role 1 hourly rate
- Role 1 hours — entered in hours
- Role 2 hourly rate
- Role 2 hours — entered in hours
- Role 3 hourly rate
- Role 3 hours — entered in hours
Agency blended rate formula
Blended rate = (each rate × its hours), added together, then divided by total hours.
Assumptions
- 29 CFR 778.115 says that when someone works two or more jobs at different straight-time rates in one workweek, the regular rate is the weighted average. Total earnings are divided by total hours at all jobs. Alaska Administrative Manual 300 prints the same steps: 25 hours at 10.00 and 20 hours at 12.50, which is 500.00 divided by 45 hours, or 11.11.
- FAR 52.216-29 lets an offer state a blended hourly rate for a labor category. FAR 52.232-7 computes the amount due as that rate times direct labor hours, and the rate includes wages, indirect costs, general and administrative expense, and profit. The rates in the boxes are an example mix. This page stops at the weighted average. It does not add the half-time overtime premium from the Alaska example.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
When someone works at two or more different straight-time rates in a single workweek, the regular rate is the weighted average. Total earnings are divided by the total number of hours worked at all jobs.
Blended regular rate for multiple positionsAlaska Department of Administration — Administrative Manual 300Scope: Alaska payroll; the weighted-average steps match 29 CFR 778.115Calculates the blended regular rate by multiplying hours in each position by that position’s rate, summing the dollars, and dividing by total hours. The worked example is 25 hours at $10.00 and 20 hours at $12.50, which is $500.00 divided by 45 hours, or $11.11. The half-time overtime premium is a further step this page does not take.
Time-and-materials proposal blended ratesFederal Acquisition Regulation — 52.216-29Scope: US federal time-and-materials and labor-hour contractsAllows a blended hourly rate for a labor category performed by the offeror and subcontractors. FAR 52.232-7 computes payment as the hourly rate times direct labor hours. That rate includes wages, indirect costs, general and administrative expense, and profit.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Agency blended rate example and edge cases
An agency blended rate is the hours-weighted average of the rates on a job. 29 CFR 778.115 gets there by adding the pay from each rate and dividing by all the hours. A blended labor rate on a proposal uses that same division.
Example: 120 hours across three rates
Role 1 is 120 an hour for 20 hours. Role 2 is 75 an hour for 60 hours. Role 3 is 45 an hour for 40 hours. Those rates are an example mix so you can see the weighted average. FAR 52.232-7 does not publish sample wages.
- Role 1 hourly rate
- 120
- Role 1 hours
- 20 hours
- Role 2 hourly rate
- 75
- Role 2 hours
- 60 hours
- Role 3 hourly rate
- 45
- Role 3 hours
- 40 hours
Calculated result$72.50per hour, weighted by hours
Pay is 2,400, 4,500, and 1,800, which adds to 8,700. Hours add to 120. The blended rate is 72.50. Alaska’s worked example, 25 hours at 10.00 and 20 hours at 12.50, is 11.11 on the same formula. Put the third role’s hours at 0 to match it.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the 72.50 first. It is 8,700 divided by 120. Role 2 has half the hours, so its 75 pulls the average more than the 120 does.
- Section 778.115 is a regular rate for one person who worked more than one job in a week. A proposal blend uses the same division across people. A role with 0 hours drops out of both the pay and the hours.
Edge cases worth checking
Overtime still needs the half-time premium
Alaska’s 11.11 is the regular rate. The manual then divides 11.11 by 2 and pays that half-time premium on the 5 overtime hours. This page stops at the regular rate. The overtime pay itself is the time card overtime calculator.
The typed rate is wages only
FAR 52.232-7 says the hourly rate includes wages, indirect costs, general and administrative expense, and profit. A 72.50 built from wage-only rates is a wage blend. Load each rate before you type it when the blend has to match a billed rate.
What changes the result most
Role 1 hourly rate
Test a lower and higher role 1 hourly rate. A small percentage change can move the final result more than expected.
Role 1 hours
Keep role 1 hours on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Role 2 hourly rate
Test a lower and higher role 2 hourly rate. A small percentage change can move the final result more than expected.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Role 1 hourly rate: 25% lower
90$67.50per hour, weighted by hours
Role 1 hourly rate: 25% higher
150$77.50per hour, weighted by hours
Role 1 hours: 25% higher
25 hours$74.40per hour, weighted by hours
Common mistakes
Check role 1 hourly rate
29 CFR 778.115 says that when someone works two or more jobs at different straight-time rates in one workweek, the regular rate is the weighted average. Total earnings are divided by total hours at all jobs. Alaska Administrative Manual 300 prints the same steps: 25 hours at 10.00 and 20 hours at 12.50, which is 500.00 divided by 45 hours, or 11.11. Make sure this matches the number you enter.
Keep role 3 hours consistent
FAR 52.216-29 lets an offer state a blended hourly rate for a labor category. FAR 52.232-7 computes the amount due as that rate times direct labor hours, and the rate includes wages, indirect costs, general and administrative expense, and profit. The rates in the boxes are an example mix. This page stops at the weighted average. It does not add the half-time overtime premium from the Alaska example. Use the same units and time period throughout the calculation.
Do not rely on one agency blended rate scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What hours-weighted rate do these roles average?
It does not replace a quote, contract, accountant, or local employment guidance.