Staffing Markup Calculator
Enter a pay rate with either a markup or a quoted bill rate. See what you pay and what the agency keeps.
The burden default of 15% is only an example, not a benchmark. Overtime and screening are not included. Your inputs stay in this browser.
How Do You Turn a Pay Rate into a Bill Rate?
Multiply the worker's hourly pay by one plus the markup. A $20 pay rate with a 50% markup bills at $30 an hour. Part of that $10 difference pays employer taxes and workers' compensation, and the rest covers recruiting, overhead and profit. Compare the pay rate as well as the bill rate between agencies.
Markup Questions
How do you calculate a staffing markup?
Markup equals bill rate minus pay rate, divided by pay rate. A worker paid $20 and billed at $30 has a markup of 50%. Margin is different: it divides the same $10 by the $30 bill rate, which gives 33%.
What is a normal staffing agency markup?
As a rule of thumb, many markups run from about 20% to 75%. Office roles tend to be lower and high-risk industrial roles higher, mainly because workers' compensation costs differ. Your written quote is what counts.
What does payroll burden mean?
It is what the employer pays on top of wages, such as Social Security and Medicare (7.65%), unemployment taxes, workers' compensation and required benefits. It varies by state and job, so the burden field here is your own estimate.