Temp Agency Markup Calculator

Formula

The formula to calculate the Temp Agency Markup (TAM) is:

\[ TAM = ES \times \frac{MP}{100} \]

Where:

Temp Agency Markup (TAM): The percentage of an employee’s salary that a temp agency earns for finding and recruiting the employee to the company.
Employee Annual Salary (ES): The annual salary of the employee.
Temp Agency Markup Percentage (MP): The percentage markup charged by the temp agency.

Let's say the employee annual salary (ES) is $50,000 and the temp agency markup percentage (MP) is 25%. Using the formula:

\[ TAM = 50,000 \times \frac{25}{100} = 50,000 \times 0.25 = 12,500 \]

So, the temp agency markup is $12,500.