Contractor pricing
Blended Labor Rate Calculator
Calculate the average hourly labor rate for a mixed crew before you build the estimate.
Enter each worker
Worker 1
Worker labor cost: $0.00
Worker 2
Worker labor cost: $0.00
Total labor cost = sum of each worker rate x hours
Total labor hours = sum of all worker hours
Blended labor rate = total labor cost / total labor hours
Results
Use the blended rate when one task is performed by workers with different pay rates.
Blended hourly rate
$0.00
Total labor cost
$0.00
Total labor hours
0
If the crew mix changes, the labor rate should change with it.
Why blended rates matter
Many jobs are not performed by one worker at one rate. A lead installer, a technician, and a helper can all touch the same scope. If you price labor using only one of those rates, the estimate will miss the actual crew cost.
Use one rate for one scope
A blended rate gives you one average labor number for the work being priced. That keeps takeoffs, proposals, and change orders easier to read while still reflecting the true mix of labor behind the number.
Contractor example
If a lead works 16 hours at $48, a mechanic works 24 hours at $34, and a helper works 20 hours at $22, the total labor cost is $2,024.00 across 60 hours. The blended labor rate is $33.73 per hour. That is the rate to carry into the estimate for that crew mix.
What this does not include
This calculator averages hourly labor cost only. If you need payroll taxes, workers compensation, benefits, or overhead added to labor, calculate those separately before setting the final selling price.