Multiplier

Standard practices for technical recruiting agencies is to use a multiplier to calculate the bill-rate from the pay-rate. Usually expressed as a whole number, or a whole number plus a decimal, the pay-rate is multiplied by the number to find the bill-rate.

For example:

A 1.7x multiplier (pronounced “one point seven”) for a pay-rate of $40/hr would equal a bill-rate of $68/hr
(Calculated as $40 x 1.7 = $68 )

A 2.1 multiplier for a $23.10/hr pay-rate would equal a bill-rate of $48.51/hr.
(Calculated as $23.10 x 2.1 = $48.51 )

Notes:

Some contract or temporary agencies use the term markup instead of multiplier. The concept is the same, but expressed as a whole percentage:

  • 1.65x multiplier = 65% markup
  • 2.0x multiplier = 100% markup
  • 1.5x multiplier = 50% markup
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