Understanding Upwork’s Fee Structure

As a freelancer on Upwork, it’s essential that you understand the fee structure. Here is a breakdown of the fees you can expect:

Percentage-based Fees

Upwork operates on a sliding fee structure. This means that the percentage Upwork takes as their cut decreases the more a freelancer works with a particular client. Here are three tiers to this structure:

• 20% for the first $500 billed with the client
• 10% for total billings with the client between $500.01 and $10,000
• 5% for total billings with the client that exceed $10,000

Example

Let’s say you have billed a client $800 in total. For the first $500, Upwork will take 20% ($100). For the next $300, Upwork will take 10% ($30). So, for the $800 you have billed, Upwork will take a total of $130, leaving you with $670.

Please note that these fees are automatically deducted, so you don’t have to worry about removing these amounts yourself.