Blended Rate

An average rate calculated across multiple inputs, such as the average hourly rate charged to clients when offering different service tiers, or the combined interest rate on multiple loans.

A blended rate provides a single useful number for planning and comparison when a business operates at multiple price points. It prevents distorted profitability calculations caused by averaging across wildly different rates.

A founder charges £150 per hour for strategy work and £80 per hour for implementation. If she spends 30 hours on strategy and 70 hours on implementation in a month, her blended hourly rate is £101 per hour, a number she uses for capacity planning and revenue forecasting.