Please enter valid non-negative numbers for all fields.
Blended Hourly Rate
$0.00
Total Headcount:0
Total Hourly Cost:$0.00
Onsite Mix:0%
Offshore Mix:0%
function calculateBlendedRate() {
var onsiteCountInput = document.getElementById('onsiteCount');
var onsiteRateInput = document.getElementById('onsiteRate');
var offshoreCountInput = document.getElementById('offshoreCount');
var offshoreRateInput = document.getElementById('offshoreRate');
var errorMsg = document.getElementById('error-message');
var resultSection = document.getElementById('result-section');
var onsiteCount = parseFloat(onsiteCountInput.value);
var onsiteRate = parseFloat(onsiteRateInput.value);
var offshoreCount = parseFloat(offshoreCountInput.value);
var offshoreRate = parseFloat(offshoreRateInput.value);
// Validation
if (isNaN(onsiteCount) || isNaN(onsiteRate) || isNaN(offshoreCount) || isNaN(offshoreRate) ||
onsiteCount < 0 || onsiteRate < 0 || offshoreCount < 0 || offshoreRate < 0) {
errorMsg.style.display = 'block';
resultSection.style.display = 'none';
return;
}
if (onsiteCount + offshoreCount === 0) {
errorMsg.innerHTML = "Total headcount cannot be zero.";
errorMsg.style.display = 'block';
resultSection.style.display = 'none';
return;
}
errorMsg.style.display = 'none';
// Calculations
var totalOnsiteCost = onsiteCount * onsiteRate;
var totalOffshoreCost = offshoreCount * offshoreRate;
var totalCost = totalOnsiteCost + totalOffshoreCost;
var totalHeadcount = onsiteCount + offshoreCount;
var blendedRate = totalCost / totalHeadcount;
var onsitePercentage = (onsiteCount / totalHeadcount) * 100;
var offshorePercentage = (offshoreCount / totalHeadcount) * 100;
// Display Results
document.getElementById('blendedRateResult').innerText = '$' + blendedRate.toFixed(2);
document.getElementById('totalHeadcount').innerText = totalHeadcount;
document.getElementById('totalHourlyCost').innerText = '$' + totalCost.toFixed(2);
document.getElementById('onsiteMix').innerText = onsitePercentage.toFixed(1) + '%';
document.getElementById('offshoreMix').innerText = offshorePercentage.toFixed(1) + '%';
resultSection.style.display = 'block';
}
Understanding the Blended Rate Calculation for Onsite and Offshore Resources
In the world of IT outsourcing and global business services, understanding how to calculate a blended rate is crucial for financial planning and contract negotiation. A blended rate represents the weighted average hourly rate of a team composed of resources located in different geographies with varying cost structures—typically "Onsite" (local, higher cost) and "Offshore" (remote, lower cost).
What is a Blended Rate?
A blended rate simplifies billing and cost estimation by providing a single hourly figure that covers the entire team, regardless of where individual members are located. Instead of tracking separate invoices for an onsite project manager at $150/hr and an offshore developer at $40/hr, a blended rate merges these costs based on the team composition.
The Formula
To calculate the blended rate, you must weigh the rates by the number of resources (or hours worked) in each location. The formula is:
Step 2: Calculate Total Headcount
Total Headcount = 2 + 8 = 10 resources
Step 3: Divide Total Cost by Headcount
Blended Rate = $580 ÷ 10 = $58 per hour
Why is this useful?
Budget Simplification: It is easier to forecast project burn rates using a single rate multiplier.
Strategic Hiring: You can see immediately how adding more offshore resources lowers the average cost, or how adding expensive onsite oversight increases it.
Contract Negotiations: Vendors often propose a blended rate to make the deal look attractive while maintaining their margins. This calculator helps you reverse-engineer their proposal to understand the underlying resource mix.
Using the Calculator
Simply enter the number of staff you plan to have onsite and offshore, along with their respective hourly rates. The calculator will instantly determine the weighted average rate, total hourly spend, and the percentage mix of your workforce. This tool helps project managers and procurement officers optimize their "Onsite-Offshore Ratio" to meet budget constraints without sacrificing delivery quality.