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Staffing bill rate and margin calculator

By Wasey Mohammed, FounderUpdated October 25, 2026 with 2026 payroll tax figuresNo sign-up. Runs in your browser.

Turn a pay rate into a bill rate you can defend. Build up the full burden (Social Security, Medicare, FUTA, SUTA, workers’ comp and benefits), take out the VMS fee, and see gross profit, gross margin and markup on pay versus loaded cost side by side. Solve from a markup, from a target margin, or check a bill rate you’ve been quoted.

The assignment
$/hr
%
% of bill
Usually deducted from what the client pays you. 0 for direct clients.
Spreads wage-capped taxes over the assignment.
Burden (employer costs on top of pay)
Social Security 6.2% up to the 2026 wage base of $184,500 and Medicare 1.45% are included automatically.
%
6.0% less up to 5.4% credit. Higher in credit-reduction states.
$
%
Your state-assigned rate. Texas new employers: at least 2.7%.
$
Texas: $9,000. Varies widely by state.
$per $100
From your policy, by class code.
% of pay
Health plan, paid sick leave, PTO, bonuses.
$/hr
Screening, onboarding or equipment spread per hour.

Result

$0bill rate an hour
$0gross profit an hour
0%gross margin
Where each billed dollar goes

    Gross margin here is gross profit after the VMS fee, divided by the bill rate. Tax figures are for 2026; confirm your state rates, wage bases and workers’ comp class codes with your payroll provider.

    Margin is half the job. The other half is finding clients who need what you bill for. Wavaron finds them and runs the approved outreach. Book a strategy call or see a sample opportunity brief.

    Markup is not margin

    The most expensive mistake on a contract desk is treating markup and margin as the same number. Markup is measured on pay; gross margin is measured on the bill rate. A 50% markup on a $25 pay rate gives a $37.50 bill rate, but after a typical 10.2% burden the gross margin is about 26.5%, not 50%.

    Burden % = Social Security + Medicare + FUTA + SUTA + workers’ comp + benefits and other Loaded cost an hour = pay × (1 + burden %) + other cost an hour Bill rate from markup = pay × (1 + markup %) Bill rate from target margin = loaded cost ÷ (1 − VMS fee % − target margin %) Gross profit an hour = bill × (1 − VMS fee %) − loaded cost Gross margin = gross profit ÷ bill Markup on pay = bill ÷ pay − 1 Markup on loaded cost = bill ÷ loaded cost − 1 Break-even bill rate = loaded cost ÷ (1 − VMS fee %)

    What goes into burden

    Social Security and Medicare (FICA)The employer pays 6.2% Social Security on wages up to $184,500 in 2026, and 1.45% Medicare on all wages.
    FUTA6.0% on the first $7,000 of each worker’s wages, reduced to 0.6% for most employers by the state credit. Employers in credit-reduction states pay more.
    SUTAState unemployment tax at your assigned rate on your state’s wage base. Texas uses a $9,000 base; new Texas employers pay the higher of 2.7% or their industry average.
    Workers’ compQuoted per $100 of payroll by job class code. Light industrial and healthcare classes usually cost more than clerical.
    Benefits and otherHealth plans, paid sick leave required by your state or city, PTO and bonuses, as a share of pay.
    VMS and MSP feesA percentage of the bill rate kept by the program. It comes straight out of gross profit, so price for it.

    Capped taxes (FUTA, SUTA and Social Security above the wage base) are spread over the wages on this assignment, assuming it falls in one calendar year and the worker has no other wages with you that year. Short assignments carry a higher effective burden for that reason.

    What it leaves out

    • Overtime. Non-exempt workers earn 1.5 times pay after 40 hours in a week under federal law, and some states add daily overtime. Bill overtime at an overtime bill rate.
    • State and local payroll taxes beyond SUTA, such as state disability or paid family leave programs.
    • Your internal overhead, recruiter commission and bad-debt risk.

    Questions owners ask

    What is the difference between markup and margin in staffing?

    Markup is the bill rate over pay: a $37.50 bill on $25 pay is a 50% markup. Gross margin is gross profit over the bill rate, after burden and fees. The same bill is about a 26.5% gross margin once taxes and workers’ comp come out.

    What is payroll burden for a temp employee?

    Everything the employer of record pays on top of wages: FICA, FUTA, SUTA, workers’ comp and any benefits or paid leave. It depends on your state, your assigned rates, the job class and the assignment length, so calculate it per assignment rather than using one average.

    How do VMS fees affect my margin?

    The fee is taken from the bill rate before you get paid, so it comes entirely out of gross profit. A 3% VMS fee on a $40 bill rate costs $1.20 an hour, and every cent of it comes out of gross profit.

    How do I set a bill rate for a target margin?

    Divide loaded cost by one minus the VMS fee and the target margin. Use the “From target margin” tab and it does this for you.

    Is my data saved or sent anywhere?

    No. Everything runs in your browser.

    Sources