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Illustrative MSP Billing-Gap Model

By The MSP Playbook
Independent editorial desk
The MSP Playbook editorial desk covers Australian managed services, contracts, pay, and workplace practice. Articles identify the evidence used and distinguish reporting from analysis.
How this article was reported and checked

The Salary Arbitrage Calculator

Explore the illustrative gap between assumed billing and your salary.

Estimates based on industry data, ASX filings, and Fair Work benchmarks. Client rates vary by contract. This tool exposes the structural gap, not exact figures for your specific contract.

Want to dig deeper? Read our [Salary Black Hole](/salary-black-hole.html) article to examine compensation evidence, or explore the [Offshore Arbitrage](/offshore-arbitrage.html) model that can affect provider economics.

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Editorial note: This article separates sourced facts, submitted experiences, and analysis. Check the linked sources, and contact the editorial desk if you find an error or need a correction.

Frequently Asked Questions

How does the MSP salary arbitrage work?
MSP billing rates and employee compensation vary by scope, utilisation, contract, and provider. This model uses illustrative assumptions to show why billing-versus-pay comparisons need context.
What is a reasonable MSP markup?
There is no universal fair markup. Compare the provider's actual scope, utilisation, employment on-costs, software, insurance, management, and margin rather than treating a simple multiple as proof of excess.
How can I calculate my true market value?
Use this model to explore a scenario. It does not know your provider's bill rate, utilisation, employment on-costs, overhead, or profit, so it cannot calculate an exact amount the MSP keeps.
Do all MSPs operate on labour arbitrage?
Most do to varying degrees. The Broken MSP Model explains why this is structural to the industry, not justδΈͺ别 bad actors.
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