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Agency Margin Calculator
Enter a candidate's pay rate and your client charge rate to see exactly what's left once employer NI, pension and holiday pay are accounted for.
Free · No signup · Nothing sent to a serverYour rates
£
£
Employer costs to include
£
Your margin£4.23/hr
22.9% of charge rate · 48.0% markup on pay rate
Client charge rate£18.50/hr
Candidate pay rate−£12.50/hr
Employer's NI−£1.49/hr
Pension (3%)−£0.28/hr
Net margin£4.23/hr
£158.65
Per week (37.5hrs)
£687.42
Per month
TempAlly does this automatically
No spreadsheets, no manual checks: pay rates, charge rates and margin, tracked for every booking. Leave your email and we'll get in touch today to show you how.
Estimates only, based on simplified 2025/26 NI and pension thresholds. Not tax or payroll advice, confirm final figures with your payroll provider or accountant.
Common questions
Margin calculator questions
How the numbers behind this calculator work, and what they don't cover.
What is a good margin for a recruitment agency?
For temporary/contract placements, most UK agencies aim for a margin between 15% and 30% of the client charge, after employer NI, pension and holiday pay. It varies a lot by sector and volume, so use this as a starting point rather than a benchmark.
What's the difference between margin and markup?
Markup is the difference between pay rate and charge rate as a percentage of the pay rate. Margin is what's actually left as profit once employer costs (NI, pension, holiday pay) are taken off the charge rate, shown as a percentage of the charge rate. They're always different numbers, so quoting the wrong one to a client (or your finance team) causes confusion.
Is holiday pay included in the pay rate or added on top?
It depends how the rate was agreed. If a worker's rate is quoted as "PAYE inclusive of holiday pay", holiday is already inside the pay rate you enter here. If it's quoted as a base rate with holiday accrued separately, switch the calculator to "Added on top" so the extra 12.07% is included in your costs.
Does this calculator include the Apprenticeship Levy?
It's an optional toggle. The levy only applies to employers with an annual pay bill over £3 million (at 0.5%, minus a £15,000 allowance), so most agencies can leave this switched off.
Are these figures accurate enough to use for payroll?
No. This tool gives a fast estimate for quoting and margin-checking, using simplified 2025/26 NI and pension thresholds. It doesn't account for individual tax codes, NI categories, pension opt-outs or umbrella company deductions. Always confirm final numbers with your payroll provider or accountant.
