Does Fiverr Take a Cut?

by FiverrAnalytics    Feb 15, 2025

Table of Contents

If you’re new to Fiverr or even an experienced seller, you might be wondering, “Does Fiverr take a cut?” The short answer is yes – Fiverr takes a portion of your earnings. But how much exactly? And is it fair? This comprehensive guide will break down Fiverr’s fee structure, answer burning questions, and provide useful tips to help you maximize your income.

Fiverr's 20% Cut is Too High – Is It Justified?

One of the most common complaints from sellers is that "Fiverr takes a 20% cut" from every completed order. Here’s what that means:

• 20% Commission on Every Sale – Fiverr deducts 20% from your earnings, regardless of the gig’s price.
• Example: If you sell a service for $100, you’ll receive $80, and Fiverr keeps $20.

Why Does Fiverr Take Such a High Percentage?

Fiverr justifies the "Fiverr percentage cut" by providing:

• Platform Security – Protects sellers and buyers from scams and disputes.
• Marketing and Exposure – Fiverr promotes your gigs to potential buyers.
• Payment Processing – Handles secure transactions, including PayPal and credit cards.

Tip: Consider the 20% fee when pricing your services to maintain profitability.

Is 20% Too High?

Some sellers argue that "Fiverr's 20% cut is too high", especially for large orders. However, the platform’s marketing reach and security features can justify the cost for many freelancers.

Does Fiverr Seriously Take 33% of the Pay?

This is a common misconception. Fiverr doesn’t take 33% directly from sellers, but certain scenarios can make it feel that way. Here's why:

• 20% Cut from Seller Earnings – As discussed, Fiverr takes 20% from the seller.
• Service Fee from Buyers – Fiverr charges buyers a service fee on each purchase:
  • $2 for orders below $50.
  • 5% for orders above $50.

Why Does It Feel Like 33%?

When you consider the buyer's service fee and the seller's 20% deduction, the total amount paid by the buyer versus what the seller receives can create the illusion of a "Fiverr cut from buyers" and sellers combined, seemingly reaching 33%.

Example Calculation:

• Buyer Pays $105 – ($100 for the gig + $5 service fee)

• Seller Receives $80 – ($100 - 20% cut)
• Fiverr Keeps $25 – ($20 from the seller + $5 from the buyer)

Tip: Understanding the fee breakdown helps you price your gigs more effectively.

What Percentage of the Amount Charged by Freelancers Does Fiverr Take?

In simple terms:

• 20% from Sellers – Taken directly from the seller’s earnings.
• 5% from Buyers – Added as a service fee on top of the gig price.

This consistent "Fiverr percentage cut" allows Fiverr to maintain its platform, provide marketing, and handle transactions securely.

Does Fiverr Take a Cut of Tips?

Yes, Fiverr takes 20% from tips as well. So, if a buyer leaves a $10 tip, you’ll receive $8, and Fiverr keeps $2.

• Why 20% Cut in Tip? – Fiverr considers tips as part of the overall order and applies the same fee structure.

Tip: If you’re relying on tips to boost your income, be mindful of the "Fiverr cut" on tips.

Fiverr and Taxes – What You Need to Know

Beyond the "Fiverr cut from sellers", freelancers need to consider taxes. Here’s how it works:

1. Fiverr VAT and Sales Tax

• VAT (Value Added Tax) – Fiverr charges VAT to buyers in certain countries, including the EU and the UK.

• Sales Tax – In the US, Fiverr may charge sales tax depending on the buyer's location.

2. Fiverr GST

• Goods and Services Tax (GST) – Applicable to buyers in countries like Australia and India. Fiverr collects GST on top of the gig price.

3. Fiverr Income Tax

As a seller, you’re responsible for reporting your earnings and paying income tax. Fiverr doesn’t withhold taxes but provides "Fiverr tax information" to help you file your "Fiverr tax return".

4. Fiverr Tax Deduction

While Fiverr doesn’t deduct taxes automatically, you can claim certain expenses as tax deductions, including:

• Platform Fees – The 20% Fiverr cut can be claimed as a business expense.
• Marketing Costs – Any paid promotions on Fiverr.
• Equipment and Software – Tools used for delivering your services.

Tip: Consult a tax professional for accurate guidance on "Fiverr seller taxes".

Get Help Using Fiverr Fee Calculator

Calculating Fiverr’s fees manually can be complicated. Luckily, you can use a Fiverr Fee Calculator to:

• Estimate Net Earnings – Input your gig price and see how much you’ll receive after Fiverr’s cut.
• Include Tips and Add-Ons – Get a detailed breakdown, including tips and extras.
• Account for Taxes – Some calculators also estimate "Fiverr tax" implications.

Tip: Search for Fiverr Fee Calculator online to find free tools that simplify the calculation process.

Common Complaints About Fiverr’s Fees

Many sellers feel that "Fiverr's 20% cut is too high" or express frustration about:

• Cut on Tips – Sellers feel they should receive 100% of the tips.
• Service Fee on Buyers – High buyer fees may discourage purchases.
• Combined Impact – The combination of "Fiverr cut from buyers" and sellers feels excessive.

Is There Any Way to Avoid Fiverr’s Cut?

No, Fiverr’s cut is mandatory for all transactions. However, you can:

• Price Strategically – Consider the 20% cut when setting your prices.
• Bundle Services – Offer packages that justify higher prices.
• Promote Add-Ons – Boost earnings with optional extras.

Tip: Avoid asking buyers to pay outside Fiverr. This violates Fiverr’s Terms of Service and can result in account suspension.

Final Thoughts on Fiverr’s Fees

To answer the question, “Does Fiverr take a cut?” – Yes, Fiverr takes a 20% cut from sellers and charges a 5% service fee to buyers. This fee structure funds Fiverr’s platform, marketing, and secure payment processing.

While some may feel that "Fiverr's 20% cut is too high", understanding how the fees work and strategically pricing your services can help you maximize your earnings. Additionally, being aware of "Fiverr tax information", including "Fiverr VAT", "Fiverr GST", and "Fiverr income tax", will help you manage your freelance income more effectively.

If you’re serious about freelancing on Fiverr, use the tips and tools mentioned here, including the Fiverr Fee Calculator, to stay informed and profitable. Happy selling on Fiverr!