Deciding How Much to Charge on Upwork

Understanding Your Worth

The first step in determining your rate is understanding your worth. Your fees should reflect the quality of your work, your experience, and the value you bring to a client. Don’t undervalue yourself just to win a job; pricing too low can send a message that you’re not confident in your abilities or that your work isn’t high-quality.

Consider Market Rates

Research the rates of other freelancers on Upwork who have similar skills and experience levels as you. This will give you a good sense of the going rate. Remember, fees on Upwork can vary greatly depending on the job category and skill level, so make sure your comparisons are as accurate as possible.

Cost of Living

You also need to take into account your cost of living. How much do you need to make in order to cover your bills, fund your retirement, and live comfortably in your area?

Don’t Forget Upwork’s Service Fee

Remember to factor in Upwork’s service fee while deciding how much to charge. Upwork charges a sliding fee based on your lifetime billings with each client. This can range from 5% to 20% of your earnings.

Here’s a breakdown of the service fee:

• 20% for the first $500 you bill a client across all contracts
• 10% for total billings with a client between $500.01 and $10,000
• 5% for total billings with a client that exceed $10,000

For example, if you wish to earn $20 per hour, you might want to charge at least $25 per hour to account for the initial 20% service fee.

Adjusting Your Rate

As you gain not only more expertise, but also a stronger reputation and higher rankings on Upwork, you will be able to raise your rates. It’s a good idea to review your pricing structure every six months or so.