Bill Rate Calculator

Your details

Build-up gives a detailed breakdown of every cost. Markup gives a quick answer if you already know your target markup percentage. Target margin reverse-solves the bill rate from a desired gross margin.
The hourly wage paid directly to the contractor or temp worker before any employer costs.
$/hr
Federal Insurance Contributions Act: employer pays 6.2% for Social Security (up to the wage base) and 1.45% for Medicare, totalling 7.65%.
%
Federal Unemployment Tax Act rate after the standard state credit. Most employers pay 0.6% on the first $7,000 of wages per worker per year.
%
State Unemployment Tax rate. New-employer rates typically range from 1% to 4%. Experienced employers may pay more or less depending on claims history.
%
Workers' compensation insurance premium expressed as a percentage of payroll. Rates vary widely by job classification and state, from under 1% for clerical work to over 20% for high-risk trades.
%
Employer-paid benefits (health, dental, vision, 401k match, PTO accrual, etc.) expressed as a percentage of the pay rate. Use 0 if the worker is a true independent contractor with no benefits.
%
Fixed overhead allocated per billable hour: recruiting costs, ATS/payroll software, office, G&A. A common approach is to divide total monthly overhead by total monthly billable hours.
$/hr
The net profit per billable hour you want to keep after all costs. This is added on top of the burdened cost and overhead.
$/hr
Managed Service Provider or Vendor Management System fee charged on the bill rate. If the client uses a VMS (e.g. Beeline, Fieldglass), this fee is typically 2-5% of the bill rate and must be built into your price.
%
Billable hours per week per worker. Standard full-time is 40 hours.
hrs
Total duration of the contract in weeks. A typical 6-month contract is 26 weeks.
weeks
Total headcount placed on this contract. All workers are assumed to have the same pay and bill rate.
workers
Currency
Bill rateThin margin
$64.53/hr

Hourly rate charged to the client

Gross profit per hour$6.00/hr
Gross margin9.3%
Fully burdened cost$58.53/hr
Effective markup43.4%
Total contract revenue$67,109
Total gross profit$6,240
Pay share$45.00
Burden share$8.53
Overhead share$5.00
Profit share$6.00

Your bill rate is $64.53/hr with a 9.3% gross margin.

  • A gross margin below 15% is thin for staffing. Consider raising the bill rate or negotiating better terms with the client.
  • You keep $6.00/hr gross profit after all employer costs.
  • Over the full contract this placement generates roughly $6,240 in gross profit.
  • Your effective markup on the pay rate is 43.4%. Markup and margin are different: margin measures profit as a share of revenue, markup measures it as a share of cost.

Next stepReview the MSP/VMS fee field if the client is using a vendor management system - failing to build this in is one of the most common margin surprises in staffing.

 = Powered by OnlyCalculators