Summary: Freelance platforms take a significant cut of your earnings. Upwork charges a tiered service fee, while Fiverr takes a flat 20% from sellers. To maintain your desired take-home pay, you must build these fees into your client quotes.
The Hidden Cost of Freelance Platforms
If you are a freelancer using platforms like Upwork, Fiverr, or Freelancer.com, the number you see on the contract isn't the number that hits your bank account. Between platform service fees, currency conversion, and withdrawal fees, your take-home pay can shrink dramatically.
Upwork Fees (2024)
Upwork uses a tiered freelancer service fee structure. This means the more you earn with a single client, the lower the fee:
- 10% on the first $500 billed with a client.
- 5% on billings between $500.01 and $10,000.
- 2% on billings over $10,000.
Fiverr Fees (2024)
Fiverr operates differently. It charges a flat 20% commission on every single gig you sell, regardless of how much you earn. Additionally, there is a 2% fee for withdrawing funds to certain payment methods.
How to Protect Your Profit
To make sure you actually earn your desired hourly rate, you must "gross up" your quotes. For example, if you want to make $100 on Fiverr, you cannot charge $100. You must charge $125, so that Fiverr takes $25 and you keep $100.
Instead of doing complex division in your head, you can use our free calculator. Simply enter your target amount, the platform fee (e.g., 10% for Upwork or 20% for Fiverr), and the fixed withdrawal fee.
Calculate Your Exact Upwork/Fiverr Quote
Frequently Asked Questions
Does the client pay the Upwork fee?
No. On Upwork, the freelancer pays the service fee out of the amount they earn. (Clients pay a separate "marketplace fee" when posting a job).
What is the fixed fee for PayPal?
PayPal typically charges around 2.99% + $0.49 per transaction for commercial payments, though this varies by country.
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