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Remote jobsClient bill rate calculator
Start from what the worker is paid and the margin you need, and get the rate to put on the quote, with the markup the client will see.
- The figures behind it · Employer on-costs (prefilled)
- 15 % NI + 3 % pension
- Formula
- cost ÷ (1 − margin)
- Common target margin
- 15 to 25 %
How the bill rate is built
Margin is a share of the bill rate, so the cost is divided, not multiplied.
- Cost per hour
- Pay rate plus employer on-costs (employer National Insurance, pension, holiday pay accrual for hourly workers, insurance) plus per-hour overheads such as payroll and compliance.
- Bill rate
- Cost divided by (1 − target margin). A cost of £18 at a 20 % margin bills at £22.50; multiplying by 1.2 would give £21.60 and only a 16.7 % margin.
- Markup
- What the client sees when comparing with the pay rate: (bill − pay) ÷ pay. The same £22.50 on a £15 pay rate is a 50 % markup.
Rule set 2026.1, last checked on October 12, 2026.
The result is an estimate based on the statutory rules. Your contract, collective agreement or tax code may change the figures. It is not tax or legal advice.
Frequently asked questions
What bill rate do I need for a 20 % margin on £15 an hour?
- About £22.50: £15 plus 18 % on-costs is £17.70, plus £0.30 of overheads is £18, divided by 0.8.
Why not just add 20 % to the cost?
- Because the margin is measured on the bill rate, not the cost. Adding 20 % to the cost gives a 16.7 % margin; dividing by 0.8 gives the 20 % you want.
Should holiday pay be in the on-costs?
- For hourly agency workers, yes: 12.07 % of pay accrues as statutory holiday. Add it to the on-costs field unless you bill holiday separately.
What next?
Filling roles for clients? Post them on Jober and manage every applicant in one place.
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