Enter the total salary of the staff hire and the markup of the temp agency to determine the total amount earned by the temp agency.

## Temp Agency Markup Formula

The following formula is to calculate the amount earned from a temp agency from markup.

TAM = ES * MP/100
• Where TAM is the amount earned by the temp agency ($) • ES is the employee annual salary ($)
• MP is the temp agency markup (%)

To calculate how much markup was earned by a temp agency, multiply the employee annual salary by the markup percentage.

## What is a temp agency markup?

Definition:

A temp agency markup is a measure of the percentage of an employee’s salary that a temp agency earns for finding and recruiting the employee to the company.

The typical temp agency markup is in the range of 20%-60% of annual salary, while full-time placements are charged at 10%-30% of annual salary.

## How to calculate temp agency markup?

Example Problem:

The following example outlines how to calculate the temp agency markup.

First, determine the employee’s annual salary. For this example, the employee is making $50,000.00 per year. Next, determine the percentage markup charged by the agency. In this case, the temp agency takes 30% of the salary in fees. Finally, calculate the total amount earned from the temp agency markup using the formula above:$ = ES * MP/100

$= 50000 * 30/100$ = \$15,000.00