Total Bill Formula:
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Definition: This calculator estimates the total bill from a staffing agency based on hours worked, base hourly rate, and agency markup.
Purpose: It helps businesses and individuals understand the total cost when working with staffing agencies that charge a markup on employee wages.
The calculator uses the formula:
Where:
Explanation: The base cost (hours × rate) is multiplied by (1 + markup) to account for the agency's fee.
Details: Accurate bill estimation helps with budgeting, cost control, and comparing different staffing agency offers.
Tips: Enter the hours worked, base hourly rate, and agency markup (default 0.20 for 20%). Hours and rate must be > 0, markup must be ≥ 0.
Q1: What is a typical agency markup?
A: Markups typically range from 15% to 50% (0.15 to 0.50) depending on industry, position, and agency.
Q2: Does this include taxes or other fees?
A: No, this calculates only the base bill before taxes or additional fees.
Q3: How do I find the base hourly rate?
A: This is the wage paid to the employee before the agency's markup is applied.
Q4: Can I use this for salaried employees?
A: Convert the salary to an hourly rate first by dividing annual salary by 2080 (standard work hours per year).
Q5: Does this account for overtime?
A: No, calculate overtime hours separately with appropriate rates and markup.