How Margin and Markup are Calculated

When a bill and pay rate is entered on the assignment, the margin and markup calculations are dependent upon your prior margin configuration. This section discusses how you calculate margin and markup.

Calculating Margin

The margin calculation on the Assignment page subtracts costs from the bill rate and then divides by the bill rate, taking into consideration the pay rate, overhead costs (fixed cost margin), and workers compensation premiums.

Margin = ((Bill Rate - Cost) / Bill Rate) * 100

Calculating Markup

The markup calculation on the Assignment page subtracts the pay rate from the bill rate and then divides by the pay rate.

Markup = ((Bill Rate - Pay Rate) / Pay Rate) * 100