What is the Upwork Conversion Fee?

What’s the Upwork Conversion Fee?

When you find a freelancer through Upwork, our Terms of Service require you to keep all work and payments on Upwork for the first two years. This helps protect both clients and freelancers and supports a trusted marketplace experience.

But we also understand that sometimes, clients and freelancers want to take their collaboration off-platform.

That’s where the Conversion Fee comes in.

With a one-time payment, you can work with your freelancer outside of Upwork — without violating our Terms of Service. We call this contract conversion.

How do you determine the Conversion Fee I'll pay?

The Upwork Conversion Fee is 13.5% of a freelancer’s estimated annual earnings:

Conversion Fee = 13.5% of a freelancer’s hourly rate x 2,080 hours (52 weeks x 40 hours)

The hourly rate we use as the base differs, depending on the contract type. See below to learn more.

For hourly contracts

If you have been working together on hourly contracts, we’ll take the highest hourly rate between the specific freelancer and client who are looking to convert their contract. We don’t incorporate any hourly rates the freelancer has charged other clients they’ve worked with in the past. Once we determine the hourly rate to use, we plug it into the formula to determine the conversion fee.

Example:

John charges his client, Ashley, either $20 per hour or $30 per hour, depending on what type of work he’s doing. Ashley wants to hire John full time, and they wish to take their work outside Upwork. Upwork will calculate John’s annual earnings using $30 per hour, and then charge 13.5% of that number as a Conversion Fee.

$30 x 2080 = $62,400

13.5% of $62,400 = $8,424 Conversion Fee

For fixed-price contracts

If you have been using fixed-price contracts for your work together on Upwork, we’ll use the hourly rate listed on the freelancer’s profile. We use this hourly rate in the formula to determine the Conversion Fee.
 

Example:

Kelly typically charges $50 per hour. Even though sometimes her rate changes, the hourly rate listed on her profile is $50. Kelly and her client, who have been working on a fixed-price contract together, wish to use other payment means so they’ll need to take their work outside Upwork. Upwork will calculate Kelly’s annual earnings using $50 per hour and then charge 13.5% of that number as a Conversion Fee.

$50 x 2080 = $104,000

13.5% of $104,000 = $14,040 Conversion Fee

How do I pay the Conversion Fee to take my project off-platform?

Learn how to pay the Conversion Fee and take your relationship outside Upwork here. Note: Clients typically initiate this process. 

Are there any discounts on the Conversion Fee?

Yes, you may be eligible for a reduced Conversion Fee based on your relationship history and payment activity on Upwork.

• Time-based discount: If your contract began more than two years ago, only a small fee applies to move your relationship off Upwork. 
• Activity-based discount: We also apply discounts based on the total Marketplace fees paid by the client and the length of the relationship between the client and freelancer.

Any eligible discounts will be automatically calculated and shown during the contract conversion process.

Why shouldn’t I take my freelancer or client off Upwork without paying the Conversion Fee?

Taking your relationship off Upwork without paying the Conversion Fee is a violation of our Terms of Service and can result in permanent account suspension.

Here’s why it’s better to convert your contract the right way:

• Stay in compliance. Avoid losing access to Upwork by following the proper process to work off-platform
• Keep your account active. Paying the fee allows you to continue using Upwork for other projects without disruption
• Clear the way for future work on Upwork. You and your freelancer or client can choose how you want to work together now, and still be able to use Upwork in the future

To move forward, simply start the contract conversion process and we’ll walk you through the rest.

Do I have to pay the Conversion Fee all at once?

Yes — the Conversion Fee must be paid in full, using a single payment method. It’s up to you and your freelancer/client to decide who will cover the cost. If you want to share the fee, you’ll need to arrange that between yourselves.

What do I lose by taking my contract off Upwork?

When you convert your contract and pay the Conversion Fee, we will no longer be able to offer any support for that relationship, including customer service, payment protection, dispute resolution services, and other valuable tools. Any issues that arise with payments, communications, deadlines, and so on, must be resolved without our assistance.