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Free UK recruitment tool

Charge Rate Calculator for Recruitment Agencies

Turn a temporary worker's pay rate into an estimated client charge rate, with holiday pay, employer NI, pension, other costs and agency margin shown clearly.

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2026/27

UK Rates

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Calculate your agency charge rate

Answer three simple questions. The employment-cost assumptions are applied automatically and can be adjusted under advanced options.

Build your quote

All figures update instantly as you type.

2026/27 assumptions

Pay rate must be zero or greater

Hours per week must be greater than zero

Minimum £12.21/hr (UK National Minimum Wage, effective 2025-04-01).

Your entries stay in this browser and are not submitted to Youtemp.

Try an example calculation

Illustrative presets only. Pay rates, costs and margins vary by assignment, location, client terms and service level.

Warehouse operative

Entry-level warehouse work with standard terms.

£12.71/hr · 40h
15% margin
Pension

Hospitality worker

Restaurant and catering temporary staff.

£13.00/hr · 32h
20% margin
Pension

HGV driver

Qualified driver placement with pension included.

£18.50/hr · 45h
18% margin
Pension

Care worker

Healthcare support worker with pension.

£13.20/hr · 37.5h
16% margin
Pension

Construction labourer

General site labourer with PPE and travel allowance.

£14.50/hr · 40h
14% margin
+2% extras

Office administrator

Temporary admin and clerical staff.

£13.50/hr · 37.5h
22% margin
Pension

How to calculate a recruitment agency charge rate

A recruitment agency charge rate is the amount invoiced to the client for each hour worked. It needs to cover the worker's pay, statutory and contractual employment costs, agency overheads and the gross profit required to deliver the service.

Worker hourly pay
Holiday pay and statutory employment costs
Pension, payroll, insurance and other agency costs
Agency gross profit
Client charge rate excluding VAT

Recruitment agency margin vs markup

Margin and markup are not the same. Gross margin measures profit against the client charge rate, while markup measures profit against the agency's total cost. A 20% margin therefore produces a higher charge rate than a 20% markup.

Pricing methodExample calculation on £16 costClient rate
20% gross margin£16 ÷ 0.80£20.00
20% markup£16 × 1.20£19.20

Which costs should a staffing agency include?

Common temporary staffing costs include holiday provision, employer National Insurance, workplace pension contributions, the Apprenticeship Levy where applicable, payroll processing, insurance, funding costs and assignment-specific overheads. The calculator keeps the common inputs simple and places specialist settings under advanced options.

How much should a recruitment agency charge?

There is no single correct margin for every placement. The commercial rate can depend on worker scarcity, sector, location, assignment length, volume, service level, compliance work, client payment terms and the agency's funding cost. Use the result as a transparent starting point, then validate it against the full client agreement and payroll setup.

2026/27 methodology

Key statutory assumptions used by this calculator.

National Living Wage, age 21+
£12.21/hr
Employer NI, standard rate
15.0%
Employer NI weekly threshold
£96.00
Holiday accrual option
12.07%
Pension qualifying band
£120.00–£967.00/week
Minimum employer pension
3%
GOV.UK minimum wage rates ↗HMRC employer rates and thresholds ↗GOV.UK holiday entitlement guidance ↗The Pensions Regulator thresholds ↗

Illustrative calculation only. Confirm statutory rates and contractual treatment with your payroll provider.

Charge rate calculator FAQs

Plain-English answers to common recruitment agency pricing questions.

How do I calculate a recruitment agency charge rate?
Add the worker pay rate, holiday provision, employer National Insurance, pension and any other employment costs to find the agency's total hourly cost. Then apply the required margin, markup or fixed profit to calculate the client charge rate.
What is the difference between pay rate and charge rate?
The pay rate is the gross amount paid to the worker. The charge rate is the amount invoiced to the client and normally includes the worker's pay, employment costs, agency overheads and gross profit.
What is the difference between margin and markup?
Gross margin is profit divided by the client charge rate. Markup is profit divided by the agency's total cost. For example, a 20% margin on a £16 cost gives a £20 charge rate, while a 20% markup gives a £19.20 charge rate.
Does the calculator include employer National Insurance thresholds?
Yes. The standard 2026/27 calculation applies 15% employer National Insurance to weekly earnings above the £96 Secondary Threshold. It also includes simplified under-21 and apprentice-under-25 zero-rate bands when selected. Payroll circumstances can differ, so confirm the correct NI category.
Should VAT be added to the recruitment agency charge rate?
Where the agency is VAT registered and the supply is taxable, VAT is normally added to the client invoice. The primary result is shown excluding VAT because margin and cost comparisons are normally made on the net charge rate.
Is holiday pay included in a temporary worker charge rate?
The agency should include the cost of statutory holiday entitlement. The 12.07% accrual method applies to eligible irregular-hours and part-year workers, but it should not be applied automatically to every worker. Select the option that matches the engagement.
What is a good gross margin for a recruitment agency?
There is no universal margin that is right for every client. The required margin depends on sector, worker scarcity, service scope, compliance work, assignment length, payment terms, funding cost and commercial risk.
Can I use the calculator for daily or weekly rates?
The calculator starts with an hourly rate and shows a weekly client charge based on the hours entered. A daily rate can be estimated by multiplying the hourly charge by the agreed paid hours per day.

Save client rate cards and pricing rules in Youtemp

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