Work out what actually reaches your bank account after platform commission, payment processing, currency conversion and withdrawal fees. The headline rate a client agrees to is rarely the amount you receive, and the gap is larger than most freelancers realize.
Where the money goes
A thousand-dollar project rarely produces a thousand dollars. It passes through four or five deductions, each modest on its own, and arrives noticeably smaller.
- Platform commission. The largest single deduction on marketplace work. Rates differ by platform and often fall as your total billing with one client rises.
- Payment processing. Charged on the way in, on the way out, or both depending on the route.
- Currency conversion. The one people miss, because it is usually buried in a poor exchange rate rather than shown as a fee. Compare the rate you receive against the mid-market rate to find it.
- Withdrawal fees. Fixed per transfer, which makes frequent small withdrawals expensive. Batching payouts reduces this.
- Income tax. Not a platform fee, but it comes out of the same amount and belongs in any honest calculation.
Quote the amount you need to receive
This is the practical takeaway. If you need a specific amount in your account, work backwards from it rather than quoting it directly. The calculator shows the gross figure required.
Freelancers who skip this step take an effective pay cut on every project and often blame their rate when the problem is the deduction stack underneath it.
Reducing what you lose
- Move long-term clients off marketplaces once the relationship is established and the platform’s terms permit it.
- Batch withdrawals so fixed fees apply less often.
- Hold a multi-currency account if you regularly bill in a currency other than your own, to avoid conversion on every payment.
- Bill in larger project blocks rather than many small invoices.
Once you know your real take-home percentage, feed it into the freelance rate calculator to set a rate that survives the deductions.
Fee structures change and vary by country, account type and payment method. Check current terms with your platform and payment provider rather than relying on the defaults here.