How much do crowdfunding platforms charge?

Typically a platform or success fee of a few percent plus a payment processing fee of around 2 to 3 percent, so roughly 5 to 10 percent of what you raise in total. Some platforms only charge if you reach your goal. Always check your platform's current fee terms.

How do I set my crowdfunding goal?

Work out what you genuinely need to deliver, then raise that divided by one minus the fee rate so that fees do not leave you short. This calculator gives that figure, so your target funds the project rather than just the headline number.

Is money raised through crowdfunding taxed?

It depends on whether it is a donation, a pre-sale of a product, or income. Donations to a registered cause and genuine gifts are treated differently from sales revenue, which may be taxable and subject to GST. Check with your accountant or Inland Revenue.

Crowdfunding Goal & Fees Calculator

This calculator works out how much you need to raise on a crowdfunding campaign to actually net your goal after fees, and how much you keep if you only hit the headline target. Crowdfunding platforms, whether Givealittle, PledgeMe, Boosted, Kickstarter or similar, are a brilliant way to fund a project, product or cause, but they are not free, and many campaigners set a goal without allowing for the cut the platform and payment processor take. The result is a campaign that hits its target but falls short of the amount actually needed to deliver, which is a stressful and avoidable position. There are usually two fees: a platform or success fee, a percentage of what you raise, and a payment processing fee on each donation or pledge, typically a few percent. Together they can take roughly 5 to 10 percent of the total. This tool flips the problem around. Instead of asking what you keep from a given total, it tells you the total you must raise so that, after fees, you are left with the amount you genuinely need. You enter your net funding goal, the platform fee percentage and the payment fee percentage, and the calculator returns the amount to raise to net your goal, the total fees on that amount, the total fee rate, and, for comparison, how much you would keep if you raised exactly your goal. Use it to set a realistic crowdfunding target, to write your campaign budget, or to compare platforms with different fee structures. Fee models vary, and some platforms only charge if you reach your goal, so check your platform's current terms; this is an estimate to help you set a target that truly funds your project.

Net funding goal (what you need)

Platform / success fee

Payment processing fee

$10,858

total to raise to net your goal

Fees on that amount$858

Total fee rate7.9%

You keep if you raise goal$9,210

Fee models vary; some platforms only charge if you reach the goal. Check current terms. An estimate to set a realistic target.

How it works

The total fee rate is the platform fee plus the payment fee. To net your goal, you must raise your goal divided by one minus that fee rate, because the fees come off the total raised. The fees are the difference between that amount and your goal. For comparison, raising exactly your goal leaves you your goal times one minus the fee rate.

Worked example

To net $10,000 with a 5 percent platform fee and a 2.9 percent payment fee, a total fee rate of 7.9 percent, you need to raise about $10,858, paying $858 in fees. If you instead set your target at exactly $10,000 and raised just that, you would keep only about $9,210 after fees, $790 short of what you needed.

Related calculators

Startup Cost: what you need to raise for.
Marketplace Fees: selling fees and GST.
GST Calculator: GST on funds raised.
Donation Tax Credit: tax on donations.

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