Freelance Agency Fee Calculator
Estimate how much an agency fee reduces your freelance earnings and what your net amount will be after commission.
Overview
The Freelance Agency Fee Calculator helps you estimate how much of a client project you actually keep after agency commission, payment processing charges, fixed job costs, and an optional tax set-aside. It is useful when pricing freelance work or comparing direct clients with agency-managed projects.
How it works
The calculator starts with the total project amount, subtracts the agency commission, then applies any payment processing fee to the remaining amount. It then subtracts fixed project costs to estimate your pre-tax net earnings. If you enter a tax set-aside percentage, that amount is reserved from positive net earnings to show a more realistic take-home estimate.
How to use this calculator
- 1Enter the total project amount billed to the client.
- 2Add the agency commission percentage from your agreement.
- 3Include any payment processing fee percentage if relevant.
- 4Enter fixed project costs such as subcontractors or software.
- 5Add an optional tax set-aside percentage and review your estimated take-home amount.
Example Calculation
Project Amount
$3,000
Agency Fee
20%
Payment Processing Fee
3%
Fixed Costs
$150
Estimated Tax Set-Aside
20%
Estimated Take-Home
$1,744.32
For a $3,000 project, a 20% agency fee removes $600, leaving $2,400. After a 2.9% processing fee and $150 in fixed costs, the pre-tax net is about $2,180.40. Setting aside 20% for tax leaves an estimated take-home amount of about $1,744.32.
Frequently asked questions
What does this calculator estimate?
It estimates how much of a freelance project you keep after agency commission, payment processing fees, fixed costs, and an optional tax set-aside.
Does the agency fee apply before or after payment processing?
In this calculator, the agency fee is deducted first, and the payment processing fee is then applied to the amount you receive after the agency cut.
Should I include tax in this calculation?
You can add a tax set-aside percentage if you want a more cautious estimate, but actual taxes depend on your location, business structure, and deductible expenses.
Can I use this for hourly freelance work?
Yes. If you know the total value of the job based on your hours and rate, enter that total as the project amount.
What counts as fixed costs?
Fixed costs can include subcontractor payments, software purchased for the project, stock assets, delivery costs, or other flat project expenses.
Why is my effective total reduction higher than the agency fee?
Because the effective total reduction includes not just agency commission, but also processing costs, fixed costs, and any optional tax set-aside you entered.
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Assumptions and warnings
Assumptions
- This calculator treats the agency fee as a percentage of the full project amount.
- Payment processing fees are estimated as a percentage of the amount you receive after agency commission.
- Fixed costs are subtracted as flat project-related expenses.
- The tax set-aside is optional and is calculated on positive net earnings only.
- Results are estimates and do not include every possible business expense or local tax rule.
Warnings
- This calculator provides an estimate only and is not financial or tax advice.
- Tax treatment, agency agreements, and payment fees can vary, so check your contract and local rules before making decisions.