Blended Rate Calculator
Official Sources & References
This calculator uses data from the following authoritative sources. All tax rates, brackets, and thresholds are verified against official government publications:
- IRS Tax Brackets 2025
- IRS W-4 Tax Withholding Estimator
- SSA 2025 Wage Base Limit
- US Dept. of Labor - Minimum Wage
- IRS Publication 15 (Employer's Tax Guide)
- DOL Overtime Rules
This calculator is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or the IRS for guidance specific to your situation.
What Is a Blended Rate?
A blended rate (also called a weighted average rate) is the combined hourly rate when a worker earns different pay rates during the same pay period. It's calculated by dividing total earnings by total hours worked.
Common Uses for Blended Rate Calculations
- FLSA overtime — When an employee works at dual rates, overtime must be paid at 1.5× the blended rate
- Multiple job roles — Employees who perform different duties at different pay rates within the same company
- Shift differentials — Night shift or weekend rates combined with regular rates
- Contractor billing — Calculating a single blended rate for mixed-skill teams
- Salary + hourly — Combining a base salary with hourly bonus or commission pay
How FLSA Handles Blended Rate Overtime
Under the Fair Labor Standards Act, when a non-exempt employee works at two or more rates in the same workweek, overtime must be paid at 1.5× the weighted average (blended) rate — not 1.5× the higher rate or 1.5× the rate at which overtime was worked.
Example: An employee works 30 hours at $20/hr and 15 hours at $28/hr in one week. Their blended rate is ($600 + $420) ÷ 45 = $22.67/hr. Overtime (5 hours) is paid at $22.67 × 1.5 = $34.00/hr. The extra overtime premium is $34.00 - $22.67 = $11.33/hr × 5 = $56.67.
Blended Rate Calculator — Frequently Asked Questions
When Do You Need a Blended Rate?
A blended (weighted average) pay rate is required in several common employment scenarios:
- Multiple pay rates: If you work two positions at the same employer with different hourly rates (e.g., $15/hr daytime and $18/hr evening), your overtime rate must be based on the blended rate for that week.
- Shift differentials: Workers who earn a base rate plus shift premiums need the blended rate calculated to determine correct overtime pay.
- Commission + hourly: Employees who earn both a base hourly rate and commissions must blend these to calculate overtime.
- Non-discretionary bonuses: Production bonuses and attendance bonuses must be included in the regular rate calculation for overtime purposes.
Blended Rate Formula
The Department of Labor requires the following calculation for the blended (weighted average) rate:
Blended Rate = Total Earnings ÷ Total Hours Worked
For example: You work 25 hours at $15/hr ($375) and 20 hours at $18/hr ($360). Total earnings = $735. Total hours = 45. Blended rate = $735 ÷ 45 = $16.33/hr. Overtime rate = $16.33 × 1.5 = $24.50/hr for the 5 overtime hours.
Blended Rate Impact on Your Paycheck
The blended rate affects your paycheck more than you might expect. Consider this weekly example:
| Scenario | Regular Pay | OT Pay | Gross Total |
|---|---|---|---|
| Wrong: OT at lower rate ($15) | $735.00 | $112.50 | $847.50 |
| Correct: OT at blended rate ($16.33) | $735.00 | $122.50 | $857.50 |
The $10/week difference adds up to over $500/year in lost wages if calculated incorrectly.