Upwork Fee Structure Explained

Understanding Upwork’s Fee System

Upwork operates on a sliding fee structure that is based on your lifetime billings with each client. This means the more you work with a client, the lower the fees you are charged.Note: This is a simplification and other factors might impact your actual earnings on the platform.

Fee Breakdown

• For the first $500 you bill a client, Upwork charges a 20% fee. This means on a $100 job, you would take home $80.
• Once you earn more than $500 with a client, the fee drops to 10%. So for a $100 job, you would take home $90.
• After you earn $10,000 with a client, the fee further drops to just 5%. At this level, a $100 job nets you $95.

Working Around Upwork’s Fee Structure

Finally, remember that while these fees might seem high, they cover a lot of the work of finding clients, handling contracts, and processing payments that would otherwise take up your time. The better relationships you build with your clients and the more work you do with them, the lower your fees become. Pro Tip: Always factor in Upwork fees when you’re deciding on your rates to set for a project. It’s your responsibility to ensure that even after Upwork’s cut, you’re still earning a satisfactory amount.