Calculate the client bill rate needed to achieve your target margin after pay rate and burden costs.
Pay Rate: What the worker receives. Burden: Employer costs on top of pay (FICA 7.65%, FUTA, SUTA, workers' comp, benefits, PTO). Typically 20-35% of pay. Margin: The staffing agency's profit.
A 30% margin on a $62.50 bill rate means the agency keeps $18.75. A 30% markup on a $43.75 loaded cost = $56.88 bill rate with only $13.13 margin (22.5% margin). Margin and markup are NOT the same.
| Type | Typical Margin | Typical Markup |
|---|---|---|
| Light Industrial | 18-25% | 22-33% |
| Administrative | 25-35% | 33-54% |
| IT / Technical | 25-40% | 33-67% |
| Executive / Professional | 30-45% | 43-82% |