Calculators/Agency Markup Calculator
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Agency Markup Calculator

See exactly what a locum agency keeps between what the facility pays (the bill rate) and what lands in your pocket (the pay rate) — or work backward from a quoted margin to the implied bill rate.

Estimate only — not tax advice. Confirm with a CPA before acting on any number here. Figures use 2026 federal tax parameters and US-only assumptions for physicians, CRNAs, and Anesthesiologist Assistants.

What the agency charges the facility.

What you receive per hour.

Result
Margin per hour$65.00
Margin (% of bill rate)26.0%
Markup (% over your pay)35.1%

How the math works

An agency charges the hospital or facility a bill rate and pays you a pay rate. The gap is the agency's gross margin, which has to cover their recruiting, malpractice, housing, travel, and profit.

  • Margin ($) = bill rate − pay rate.
  • Margin (% of bill) = margin ÷ bill rate. This is the convention most agencies use internally.
  • Implied bill = pay rate ÷ (1 − margin%). Use this when an agency tells you their margin but not the bill rate.

Typical locum margins run roughly 20–35%. A higher margin is not automatically bad — but you can't negotiate what you can't see. For the full breakdown, read our guide to agency markup.

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