How to Calculate Agency Rate Card
What is Agency Rate Card?
Agency billing rates must cover staff cost, overhead, profit margin, and non-billable time. Understanding the true rate needed prevents unprofitable project pricing.
Formula
- NI
- NI value — Variable used in the calculation
Step-by-Step Guide
- 1Staff total cost = Salary + Employer NI + Benefits + Desk/equipment/software
- 2Billable hours = Total available hours x Utilisation rate (typically 65-80%)
- 3Target rate = Break-even rate / (1 - target profit margin)
Worked Examples
Frequently Asked Questions
What is Agency Rate Calc?
Agency billing rates must cover staff cost, overhead, profit margin, and non-billable time. Understanding the true rate needed prevents unprofitable project pricing
How accurate is the Agency Rate Calc calculator?
The calculator uses the standard published formula for agency rate calc. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Agency Rate Calc calculator use?
This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Agency Rate Calc calculator use?
The core formula is: Staff total cost = Salary + Employer NI + Benefits + Desk/equipment/software. Each step in the calculation is shown so you can verify the result manually.
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