Markup & Margin Calculator for Accounting Firm

Accounting firms price services in three main ways: hourly billing, fixed-fee engagements, and value-based pricing. Hourly billing is the traditional model, with rates ranging from $75 to $150/hour for bookkeeping staff, $150 to $300/hour for CPAs, and $250 to $500/hour for partner-level advisory. But the industry is shifting toward fixed-fee and value-based pricing because hourly billing punishes efficiency and caps your revenue at available hours. A 1040 that takes you 90 minutes and costs the client $350 is a better deal for everyone than billing 90 minutes at $200/hour ($300) because the client gets certainty and you can invest in tools that make you faster without losing revenue. The concept of markup in accounting is really about the relationship between your staff cost per hour and the rate you charge the client. If a staff accountant costs you $35/hour fully loaded and you bill their time at $125/hour, that is a 257% markup and a 72% margin. This calculator helps you model different pricing structures against your cost base.