C2C Vendor Rate Split Calculator
Trace recruiter and sub-vendor margins to calculate your final hourly rate take-home.
C2C Vendor Setup
| Entity | Hourly Rate | Layer Cut |
|---|
Vendor Chain Leakage Map
How to Use and Understand C2C Rate Splits
What is a Corp-to-Corp (C2C) vendor chain?
A Corp-to-Corp (C2C) vendor chain is the sequence of intermediary companies (prime vendors, mid-vendors, and sub-tier agencies) placed between the end client and your final employer.
In the US IT staffing industry, especially for visa holders (H-1B, OPT, CPT), the contractor rarely bills the end-client directly. Instead, there is a chain of corporations involved: Client → Prime Vendor → Mid-Vendor(s) → Employer (W2/C2C Agency) → Contractor.
Each intermediate entity (vendor layer) takes a margin, commonly known as "leakage" or "vendor cut". This calculator helps you map those cuts to find out exactly how much of the client's money reaches your pocket.
How do you calculate a C2C vendor split?
To calculate a C2C vendor split, you subtract each vendor layer's margin (either a flat hourly dollar fee or a percentage cut) from the client billing rate, then apply your employer's split ratio.
- Client Bill Rate: Input the rate the end client pays per hour (e.g. $100/hr).
- Employer Payout Split: If your employer has a split arrangement with you (e.g., 80/20 split, meaning you get 80% and the employer takes 20% to run your visa/payroll), adjust the slider.
- Add Vendor Layers: Click "Add Vendor Layer" to simulate intermediate agencies. You can name them (e.g. "Collabera", "Mastech") and specify their margins as either a flat hourly cut (e.g. $5/hr) or a percentage split (e.g. 10%).
- Read the Output: Review the interactive leakage flow chart on the right side to inspect the exact drop in billing rates.
Why is an 80/20 or 70/30 rate split common in staffing?
An 80/20 or 70/30 split is common in IT staffing because employers use their 20% to 30% margin cut to cover overhead expenses, corporate compliance, and legal visa filing fees (LCA, USCIS processing).
Many consultancies employ H1B/OPT candidates on a percentage split model. The remaining 80% or 70% of the net billing rate is paid out to the employee as W2 wages and/or business expense disbursements.