How to Price Your Services to Cover Platform Fees

One of the biggest mistakes new freelancers make is calculating their platform fees incorrectly. If you want to take home $100 and Fiverr charges a 20% fee, you should NOT charge $120. Here is why.

The Wrong Math

If you charge $120, Fiverr will take 20% of $120.
20% of $120 = $24.
$120 - $24 = $96. You just lost $4 of your target income!

The Correct Formula

To calculate exactly what to charge to cover a platform fee, use this formula:

Real World Example

Let's say you want $100 in your pocket. The fee is 20% (or 0.20).

• 1 - 0.20 = 0.80
• $100 ÷ 0.80 = $125

If you charge $125, Fiverr takes 20% ($25), and you are left with exactly $100.