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Primary formula: minimum blended rate = minimum revenue ÷ productive hours

Educational only: Business decision support, not accounting, tax or legal advice.

Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this planner helps you decide

Best for

Agencies pricing a mixed senior and junior delivery team.

Outputs

Total and productive hours, delivery cost, nominal and utilisation-adjusted cost rates, minimum blended rate and revenue.

Start here

Enter each role group’s hours and internal cost, project overhead, target utilisation and margin.

Use a different tool when: Do not use this to price recurring customer support; use Recurring Support Plan Pricing Planner for that decision. Use this tool to set a blended team rate.

Quote & capacity

Agency Blended Rate: total and productive hours

Total and productive hours, delivery cost, nominal and utilisation-adjusted cost rates, minimum blended rate and revenue.

Amounts use the same currency as your inputs. No currency conversion is performed.

Agency Blended Rate

Weight a mixed delivery team into a margin-protected rate.

Your numbers stay in this browser

Senior delivery hours.

currency units

Internal senior cost.

Junior delivery hours.

currency units

Internal junior cost.

currency units

Fixed project overhead.

%

Share of team hours expected to be productive.

%

Contribution retained.

Decision result

Every result is derived by the registered service and project engine.

PDF and CSV exports stay on this device. Clean page links contain no inputs.
Total Hours
50 hours/project
Productive Hours
37.5 hours/project
Delivery Cost
4,350.00/project
Blended Cost Rate
87/hour
Utilisation Adjusted Cost Rate
116/hour
Minimum blended rate
165.71/hour
Minimum Revenue
6,214.29/project
Target Contribution
1,864.29/project

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Current scenario165.71/hourBaseline
Lower Junior hours167.60/hour+1.89/hour (+1.1%)
Higher Junior hours163.94/hour−1.78/hour (−1.1%)

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Minimum blended rate

Minimum Blended Rateminimum revenue ÷ productive hours165.71/hour
Result165.71/hour

Reports/hour from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.

Agency Blended Rate Planner formulas
Inputs used by these formula steps
Minimum Blended RateSenior Hours
20
Minimum Blended RateSenior Cost Per Hour
110
Minimum Blended RateJunior Hours
30
Minimum Blended RateJunior Cost Per Hour
55
Minimum Blended RateProject Overhead
500
Minimum Blended RateTarget Utilisation
0.75
Minimum Blended RateTarget Margin
0.3

Total Hours

Total Hourssenior hours + junior hours50 hours/project
Result50 hours/project

Reports hours/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.

Agency Blended Rate Planner formulas
Inputs used by these formula steps
Total HoursSenior Hours
20
Total HoursSenior Cost Per Hour
110
Total HoursJunior Hours
30
Total HoursJunior Cost Per Hour
55
Total HoursProject Overhead
500
Total HoursTarget Utilisation
0.75
Total HoursTarget Margin
0.3

Productive Hours

Productive Hourstotal hours × target utilisation37.5 hours/project
Result37.5 hours/project

Reports hours/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.

Agency Blended Rate Planner formulas
Inputs used by these formula steps
Productive HoursSenior Hours
20
Productive HoursSenior Cost Per Hour
110
Productive HoursJunior Hours
30
Productive HoursJunior Cost Per Hour
55
Productive HoursProject Overhead
500
Productive HoursTarget Utilisation
0.75
Productive HoursTarget Margin
0.3

Delivery Cost

Delivery Costsenior cost + junior cost + project overhead4,350/project
Result4,350.00/project

Reports/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.

Agency Blended Rate Planner formulas
Inputs used by these formula steps
Delivery CostSenior Hours
20
Delivery CostSenior Cost Per Hour
110
Delivery CostJunior Hours
30
Delivery CostJunior Cost Per Hour
55
Delivery CostProject Overhead
500
Delivery CostTarget Utilisation
0.75
Delivery CostTarget Margin
0.3

Blended Cost Rate

Blended Cost Ratedelivery cost ÷ total hours87/hour
Result87/hour

Reports/hour from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.

Agency Blended Rate Planner formulas
Inputs used by these formula steps
Blended Cost RateSenior Hours
20
Blended Cost RateSenior Cost Per Hour
110
Blended Cost RateJunior Hours
30
Blended Cost RateJunior Cost Per Hour
55
Blended Cost RateProject Overhead
500
Blended Cost RateTarget Utilisation
0.75
Blended Cost RateTarget Margin
0.3

Utilisation Adjusted Cost Rate

Utilisation Adjusted Cost Ratedelivery cost ÷ productive hours116/hour
Result116/hour

Reports/hour from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.

Agency Blended Rate Planner formulas
Inputs used by these formula steps
Utilisation Adjusted Cost RateSenior Hours
20
Utilisation Adjusted Cost RateSenior Cost Per Hour
110
Utilisation Adjusted Cost RateJunior Hours
30
Utilisation Adjusted Cost RateJunior Cost Per Hour
55
Utilisation Adjusted Cost RateProject Overhead
500
Utilisation Adjusted Cost RateTarget Utilisation
0.75
Utilisation Adjusted Cost RateTarget Margin
0.3

Minimum Revenue

Minimum Revenuedelivery cost ÷ (1 − target margin)6,214.29/project
Result6,214.29/project

Reports/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.

Agency Blended Rate Planner formulas
Inputs used by these formula steps
Minimum RevenueSenior Hours
20
Minimum RevenueSenior Cost Per Hour
110
Minimum RevenueJunior Hours
30
Minimum RevenueJunior Cost Per Hour
55
Minimum RevenueProject Overhead
500
Minimum RevenueTarget Utilisation
0.75
Minimum RevenueTarget Margin
0.3

Target Contribution

Target Contributionminimum revenue − delivery cost1,864.29/project
Result1,864.29/project

Reports/project from the entered project, capacity and ex-tax commercial assumptions. The engine retains full precision; presentation is bounded for readability.

Agency Blended Rate Planner formulas
Inputs used by these formula steps
Target ContributionSenior Hours
20
Target ContributionSenior Cost Per Hour
110
Target ContributionJunior Hours
30
Target ContributionJunior Cost Per Hour
55
Target ContributionProject Overhead
500
Target ContributionTarget Utilisation
0.75
Target ContributionTarget Margin
0.3

Inputs used

Senior hours
20
Senior cost per hour
110
Junior hours
30
Junior cost per hour
55
Project overhead
500
Target utilisation
0.75
Target margin
0.3
Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://margin101.com/tools/agency-blended-rate/?sv=1&juniorCostPerHour=55&juniorHours=30&projectOverhead=500&seniorCostPerHour=110&seniorHours=20&targetMargin=0.3&targetUtilisation=0.75

ParameterMeaningUnitAllowed valuesPresenceDefault
juniorCostPerHourInternal junior cost.currency units/hour0 to 10000000Required55
juniorHoursJunior delivery hours.hours/project0 to 10000000Required30
projectOverheadFixed project overhead.currency units/project0 to 10000000Required500
seniorCostPerHourInternal senior cost.currency units/hour0 to 10000000Required110
seniorHoursSenior delivery hours.hours/project0 to 10000000Required20
targetMarginContribution retained.proportion of project fee retained as contribution0 to 0.99Required0.3
targetUtilisationShare of team hours expected to be productive.proportion of paid agency capacity billable0 to 0.99Required0.75

Agency Blended Rate: total and productive hours

The agency blended rate result uses only the entered commercial assumptions.

Formula summary

Primary formula
minimum blended rate = minimum revenue ÷ productive hours

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Use the blended rate only for the entered team mix.

Stress-test the decision

Lower target utilisation, shift more hours to the senior role and retest project overhead.

When this estimate can be misleading

  • Results depend on the accuracy and consistent basis of user-entered assumptions.
  • The planner does not forecast demand, delivery performance or contract outcomes.
  • Use the result as educational business decision support, not accounting, tax or legal advice.
  • The agency blended rate result uses only the entered commercial assumptions.

Educational estimate, not advice. See all assumptions & limitations →

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I set a blended team rate?

Use the blended rate only for the entered team mix.

Which planning assumptions should I stress-test?

Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.