Agency margin calculator

Put in a temp's pay rate, hours and charge rate, and see what the week really costs the agency, with holiday pay, employer National Insurance and pension, the margin left, and the charge rate a target margin needs.

Pay rate (£ an hour)From April 2026 the National Living Wage is £12.71 for 21 and over.

Hours a week

Charge rate to the client (£ an hour)

Holiday pay (%)12.07% of hours worked.

Employer NI (%)

NI starts above (£ a week)

The worker is in the workplace pension

Employer pension (%)

On earnings above (£ a week)

Up to (£ a week)

Apprenticeship levy (%)0.5% only if your pay bill is over £3 million a year.

Other costs (% of pay)Insurance, payroll software, and the like.

Target margin (%)

Cost of the week£617.07

Margin a week£39.18

Margin an hour£1.04

Margin6%

For a 20% margin, charge £20.57 an hour.

Pay £476.63, holiday pay £57.53, employer NI £65.72, pension £12.42, other costs £4.77.
Cost of the week: £617.07. Charged: £656.25.
Margin: £39.18 a week (£1.04 an hour), 6% of the charge. Markup on pay: 37.7%.

One PAYE worker for one week, before VAT. Rates are 2026/27 and change each April; check them against HMRC and The Pensions Regulator. Employment Allowance, if you claim it, isn't included.

Varisett Staffing turns approved timesheets into the pay file and the client invoice, so the margin is right every week.

See Varisett Staffing