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Bill Rate Margin

For staffing and consulting businesses, the spread between the rate charged to clients (bill rate) and the fully loaded cost of the resource doing the work — expressed as a percentage or dollar margin.

What it shows

Bill rate margin is the fundamental unit economics measure of a staffing or consulting business. Declining margins signal pricing pressure, increased competition, or wage inflation outpacing billing rate increases — each requiring a different strategic response.

Formula

Bill Rate Margin % = (Bill Rate − Fully Loaded Cost Rate) ÷ Bill Rate × 100. Fully loaded cost includes base salary, benefits, employer taxes, and overhead allocation.