Staffing Markup Calculator

Convert markup to margin and back — and see the bill rate and gross profit it produces.

50.0%

Markup

33.3%

Margin

$45.00/hr

Bill rate

$15.00/hr

Gross profit

50.0% markup equals 33.3% gross margin. On a $30.00/hr pay rate, that bills $45.00/hr.

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Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality — verify with a licensed accountant before relying on these figures.

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Markup and margin are the two numbers staffing agencies confuse most often — and the confusion costs real money. Markup is profit as a percentage of your pay rate; margin is profit as a percentage of the bill rate. This staffing markup calculator converts between them instantly and shows the bill rate and gross profit per hour.

Enter a pay rate, choose whether you're working from a markup or a margin, and type the percentage. Use it to quote clients, sanity-check a contract, or set a consistent markup policy across your desk.

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Frequently Asked Questions

What is the difference between markup and margin?
Markup is profit measured against your cost (the pay rate): bill = pay × (1 + markup). Margin is profit measured against the bill rate: margin = profit ÷ bill. They describe the same dollars from different bases, which is why a 50% markup equals a 33.3% margin.
How do you convert markup to margin?
Margin = markup ÷ (1 + markup). For example, a 60% markup is 60 ÷ 160 = 37.5% margin. To go the other way, markup = margin ÷ (1 − margin). This calculator converts both directions instantly.
What markup do staffing agencies use?
Common staffing markups run from roughly 40% to 75% over the pay rate, varying by role, skill scarcity, region, and contract terms. Remember that your markup must clear your employer burden before it becomes profit.
Does a higher markup always mean higher profit?
A higher markup raises the bill rate and gross profit per hour, but client willingness to pay sets the ceiling. The calculator shows the bill rate any markup produces so you can balance competitiveness against margin.
Is the staffing markup calculator free?
Yes — free, no sign-up, instant results in your browser.