Mark up a pay rate to a bill rate that covers burden and margin.
Please do not make financial decisions based on these results.
What is the Bill Rate Calculator?
Mark up a pay rate to a bill rate that covers burden and margin. To use the Bill Rate Calculator, enter pay rate per hour, burden: taxes and insurance, target margin; it returns bill rate, markup on pay, gross profit per hour, and shows them instantly as you type.
Where the Bill Rate Calculator fits
Mark up a pay rate to a bill rate that covers burden and margin. The main figure it returns is the Bill rate, worked out from the values you enter.
It belongs with the other hr & workforce tools. If you are comparing options or checking a result from another angle, try the DART Rate Calculator, Attrition Rate Calculator or the Turnover Rate Calculator.
How to use the Bill Rate Calculator
- Enter your numbers. Start with Pay rate per hour ($), Burden: taxes and insurance (%), Target margin (%). Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Bill rate, and the cards below show Markup on pay, Gross profit per hour. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Bill Rate Calculator using the default values shown in the calculator above:
Inputs
| Pay rate per hour ($) | 28 |
|---|---|
| Burden: taxes and insurance (%) | 18 |
| Target margin (%) | 20 |
Results
| Bill rate | $41.30 |
|---|---|
| Markup on pay | 47.5% |
| Gross profit per hour | $8.26 |
With these inputs the calculator returns Bill rate: $41.30. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Pay rate per hour ($) from 28 to 33.6 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Bill rate | $41.30 | $49.56 | +20% |
| Markup on pay | 47.5% | 47.5% | 0% |
| Gross profit per hour | $8.26 | $9.91 | +20% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Bill Rate Calculator reports Bill rate, markup on pay and gross profit per hour. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is a staffing markup?
The percentage added to a worker’s pay to cover taxes, insurance, overhead and profit.
Are the safety rates the OSHA method?
Yes. TRIR and DART use the OSHA formula with the 200,000-hour base.
Are the HR formulas legal advice?
No. They are standard measures for planning and reporting. Employment rules vary by country and state, so check local law for pay and leave.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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