1. What is Weighted Hourly Rate?

The Weighted Hourly Rate calculates the average rate across multiple time periods, weighting each rate by the number of hours worked at that rate. It provides a more accurate representation of overall earnings than a simple average.

2. How Does the Calculator Work?

The calculator uses the weighted rate formula:

Where:

• \( \text{Rate}_i \) — Hourly rate for period i ($/h)
• \( \text{Hours}_i \) — Hours worked at Rate_i (h)
• \( \text{Total Hours} \) — Sum of all hours worked

Explanation: The formula calculates the average rate weighted by the time spent at each rate, giving more importance to rates with longer durations.

3. Importance of Weighted Rate Calculation

Details: Accurate weighted rate calculation is crucial for determining true average earnings, budgeting, project costing, and financial analysis when multiple rates are involved.

4. Using the Calculator

Tips: Enter rates in $/h and corresponding hours in h as comma-separated values. Both lists must have the same number of values. All rates and hours must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: When should I use weighted average instead of simple average?
A: Use weighted average when different rates apply for different time periods, as it accounts for the duration at each rate.

Q2: Can I use this for different currencies?
A: Yes, but ensure all rates are in the same currency unit for accurate calculation.

Q3: What if I have zero hours for a rate?
A: Rates with zero hours won't contribute to the weighted average and can be omitted from the calculation.

Q4: How does this differ from regular average?
A: Regular average treats all rates equally, while weighted average considers the time spent at each rate.

Q5: Can this be used for project billing?
A: Yes, it's useful for calculating effective hourly rates when different team members have different rates.