Upwork takes between 0% and 15% of each contract, but that is only one of four costs. Connects, withdrawal fees and currency conversion come out of your pocket too. On a typical $3,000 project a developer keeps a little under 90% before tax. Here is each fee, what it costs and how to price for it.
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The four costs at a glance
| Cost | Amount | When you pay it |
|---|---|---|
| Freelancer service fee | 0% to 15% of the contract | On every payment you receive |
| Connects | $0.15 each | On every proposal you send |
| Withdrawal fee | $0 to $50 per transfer, by method | Each time you move money out |
| Currency conversion | Varies | When you withdraw in a currency other than USD |
The freelancer service fee
Upwork charges a freelancer service fee of 0% to 15% per contract. Three things are worth knowing.
- You see it before you commit. The percentage is shown when you submit a proposal or receive an offer.
- It is locked for that contract. It will not change later, though your next contract may carry a different rate.
- It is refunded with the money. If you refund a client, Upwork returns the fee on that amount.
Because the rate varies by contract, do not assume 10%. Read the figure on the proposal screen and set your bid after you have seen it.
There are exceptions. Enterprise clients usually carry a 10% fee under their own terms. Clients you bring to Upwork yourself fall under Direct Contracts, where the fee is 5%, or 0% on the paid plan.
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Connects
Every proposal costs Connects at $0.15 each. A developer sending 10 proposals a month at 16 Connects each spends $24. We break this down in Upwork Connects Explained, and look at the $19.99 plan that bundles 100 of them in Is Upwork Plus Worth It?.
Withdrawal fees
Upwork lists these fees in its guide on how to get paid.
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| Method | Upwork's fee per transfer |
|---|---|
| Direct to Local Bank (outside the US) | $0.99 |
| Direct to US Bank (ACH), US tax address | Free |
| Direct to US Bank (ACH), international freelancers | $2.99 |
| Instant Pay (US freelancers) | $2.00 |
| US Dollar Wire Transfer | $50.00 |
PayPal, Payoneer and M-Pesa are also available in supported countries. Check the fee shown on the withdrawal screen, because the provider may add its own charge.
The simple way to cut this cost is to withdraw less often. One transfer a month at $0.99 costs $11.88 a year. One a week costs $51.48.
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If you are paid in a currency other than US dollars, Upwork applies a conversion fee. Compare it with a multi-currency account before you choose a method.
When the money becomes available
Fees are not the only delay between work and bank account.
- Hourly contracts are billed weekly, Monday to Sunday. Earnings become available ten days later, on the following Wednesday.
- Fixed-price contracts release funds five days after the client approves a milestone.
- Bonuses are available five days after the client's payment is processed.
Plan your cash flow around those gaps, especially in your first month.
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What the client pays
Clients have their own costs, and it helps to know them when you negotiate.
- A marketplace fee of up to 7.99% on payments to freelancers. Qualifying US clients who pay by bank account pay 3%.
- A one-time contract initiation fee of $0.99 to $14.99 per new contract.
Adding a milestone to an existing contract does not trigger a new initiation fee. That is a small reason to extend a contract instead of opening a new one.
Worked example: a $3,000 Laravel build
Assume a fixed-price contract with a 10% service fee, won after five proposals at 16 Connects each, and paid out in one local bank transfer.
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| Item | Amount |
|---|---|
| Contract value | $3,000.00 |
| Service fee at 10% | -$300.00 |
| Connects (80 at $0.15) | -$12.00 |
| Withdrawal (Direct to Local Bank) | -$0.99 |
| You keep, before tax and conversion | $2,687.01 |
That is 89.6% of the contract. At a 15% fee the same job leaves $2,537.01, or 84.6%. Tax comes after that, so run your own numbers through our salary tax calculator.
How to price for the fees
Decide what you need to keep, then work backwards. To keep $50 an hour at a 10% fee, bid $55.56. At 15%, bid $58.82. The formula is your target rate divided by one minus the fee.
Our developer day-rate calculator gives you the target. The proposal screen gives you the fee. Set the bid last.
