What is Markup?
Markup is the difference between the bill rate and the pay rate on a staffing placement, usually expressed as a percentage of the pay rate.
Why does Markup matter?
Markup is the core unit of profitability in staffing; agencies track it closely because it has to cover overhead, taxes, insurance, and profit margin on every placed worker.
How does Markup work?
An agency calculates markup by subtracting the pay rate from the bill rate and dividing by the pay rate; for example, a $20 pay rate and $30 bill rate is a 50% markup.
Frequently asked questions
Is markup the same as profit margin?
No. Markup is calculated against the pay rate; margin is typically calculated against the bill rate (revenue), so the two percentages are not interchangeable even for the same placement.
What is a typical staffing markup?
Typical markups vary widely by industry and role, commonly ranging from roughly 25% to 75%, depending on burden costs, competition, and contract terms.
How BrightMove helps
BrightMove’s Back Office module calculates markup automatically on every placement, keeping agency margins visible in real time. See BrightMove’s Back Office billing and invoicing.