When partners, associates, and paralegals all work a matter at different rates, the blended rate is the single effective hourly figure — total fees over total hours, an hours-weighted average.
The example
Mixed team, different rates.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Total fees / hours | |
| 3 | Blended rate | → $317/hr |
The formula
The formula:
How it works
How it works:
- SUMPRODUCT(hours, rates) totals the fees across all timekeepers.
- Divide by SUM(hours) for the hours-weighted average rate.
- It’s not the simple average of the rates — whoever worked the most hours pulls the blend toward their rate.
- A blended-rate engagement bills every hour at this one figure regardless of who worked.
Weighting is the whole point. A $600 partner and a $200 paralegal don’t blend to $400 unless they worked equal hours. If the paralegal logged 80% of the time, the blend sits near $280. Clients negotiating a blended-rate deal care about the staffing mix, not the rate card — SUMPRODUCT captures exactly that.
Try it: interactive demo
Hours and rate for two timekeepers.
Variations
Total fees
Before blending:
Simple avg (for contrast)
Unweighted:
Fees at a capped blend
Negotiated rate:
Pitfalls & errors
Weighted, not simple. Use SUMPRODUCT ÷ SUM(hours), not AVERAGE of rates.
Same-length ranges. Hours and rates must align row-for-row.
Mix drives the blend. Heavily-staffed-low changes the effective rate.
Practice workbook
Frequently asked questions
How do I calculate a blended hourly rate in Excel?
Why not just average the rates?
How do I bill at a negotiated blended rate?
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