Upwork Fee

[realeric]

Hi, I am confused about upwork fee, may someone help to explain?

So i got a $674 project divided into 2 milestones, first milestone is  $387 and 2nd milestone is $287. I have withdrawn first milestone, and only got $269.9, meaning upwork fee is $117.1 (!). Is this total fee cut by upwork or, will there be another cut for the next milestone? How do upwork calculate it's fee?

Eric

[deardipu]

To Eric, 

20% fee is applicable for first 500$ earning from a client. When you earn over 500, It will be charged 10% fee. 

So 100$ will be charged for first 500$, and 17.4$ will be charged for rest 174$ amount. So total charge should be 117.4$.

But for your first milestone, it should have been charged only 77.4$ based on 20% fee for first 387$.

[realeric]

hi, yes meaning there should  be no more cut for 2nd milestone, am i correct?

[martina_plaschka]

Upwork's business model would be really bad if they only charge you their fee once. 

[fmethubd]

Yes, appreciated answer.

[petra_r]

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eric t wrote:

, first milestone is  $387 and 2nd milestone is $287. I have withdrawn first milestone, and only got $269.9

---

You've been paid $337 under that contract, not $387, so $337 minus 20% is $269.90 and you were paid correctly.

[realeric]

Oops, yes sorry, should be $337 for first milestone. So there will be no more cut for 2nd milestone?

[petra_r]

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eric t wrote:

Oops, yes sorry, should be $337 for first milestone. So there will be no more cut for 2nd milestone?

---

Of course there will be. You are charged 20% up to the first $500, then 10% on any sum above $500.  So far you have been charged 20% on $337

So the fees on the second milestone will be partly 20% and partily at 10%

Overall. you can easily work out the overall fees by taking the budgets x 10% and adding $50-

So on a budget of $674 it would be 67.40 + 50 = $117.40

[realeric]

hi,so there will be another $28.7 fee cut on next milestone right? Ok Petra, thanks for the explanation, its helpful.

[martina_plaschka]

No, $50. I don't know how you arrive at $28,7?

[realeric]

 sorry, where is the $50 coming from? can you help me with the fee calculation, the overall project cost is  $674 divided into 2 milestone , 1st milestone supposed to be $387 and 2nd milstone is $287..

[g_vasilevski]

Hi Eric,

Here’s how it works:

• $0-$500 in earnings from a client: 20% service fee applied to earnings
• $500.01-$10,000 in earnings from a client: 10% service fee
• $10,000.01 or more in earnings from a client: 5% service fee

Example: On a $600 project with a new client, your freelancer service fee would be 20% on the first $500 and 10% on the remaining $100. Your earnings after fees would be $490.

To learn more about this, check out this guide, thank you.

[realeric]

Allright, thanks!

[martina_plaschka]

	20%	20%	10%
674	337	163	174
	67	33	17	50
	270	130	157

[realeric]

many thanks!

[petra_r · Accepted solution]

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eric t wrote:

  1st milestone supposed to be $387

---

No. It isn't! As I explained hours ago, you were paid $337 for the first milestone and NOT $387. You even acknowledged that! You paid 20% fee on that.

Now you have the second milestone. It's $287.

Because that milestone will take you over the $500 barrier, the fee will be mixed.

On the first part ( $163 up to $500) the fee at 20% will be $32.60

On the second part ($124 over $500) the fee at 10% will be $12.40

So altogether the fees on the second milestone are $45

[realeric]

Ok, thanks!

[76860790]

I wanna check why the pending pay-out of $262.50 will have a deduction amounting of $21.01. I am on 5% deduction fees already.  I wanna understand the computation for the pending pay-out. Thank you

**Edited for Community Guidelines**

[PradeepH]

Hi Janikka,

Thank you for your message. Please note that the 5% freelancer service fee is applicable for earnings of $10,000.1 and above with a specific client. That said, you are charged the 10% freelancer service as your invoice for $262.50 is still below the $10,000 earnings. Feel free to message us if you need further assistance.

Thank you,

Pradeep