Bill Rate Calculator
Add a markup to the pay rate to find the bill rate, the hourly amount to charge a client to cover costs and profit.
- Free
- No sign-up
Enter a pay rate and markup to see the bill rate.
Worked example
With these example inputs:
- Pay rate (per hour)$50
- Markup40%
Bill rate: $70.00
- Pay rate$50.00
- Amount added on$20.00
- As a share of the total28.57%
- If the first figure were 10% higher$77.00
Frequently asked questions
How is the bill rate calculated?
Multiply the pay rate by one plus the markup. A $50 pay rate with a 40% markup gives a $70 bill rate.
What does the markup cover?
The markup covers overheads, taxes, benefits, unbilled time and profit. Staffing firms often use a multiplier rather than a single percentage to set it.
How does this calculator work?
It takes the hourly pay rate and adds your markup as a percent. So a forty percent markup multiplies the pay by one point four. The result is the bill rate you charge a client. That rate covers the wage plus your costs and profit.
What is the difference between pay rate and bill rate?
The pay rate is the wage the worker actually receives. The bill rate is the higher amount you charge the client. The gap between them is your markup. It pays for overhead, taxes, and your profit margin.
How big should my markup be?
It should cover every cost beyond the wage plus a profit. List taxes, insurance, and office costs to find the floor. Then add the margin your firm needs to grow. A markup that is too low can leave you with nothing.