Freelance Platform Fees of 20–25%: What They Really Do to Your Development Budget (2/4)
You paid ₩11 million — but the developer walks away with only ₩7.25 million?
The numbers every client must know before hiring through a freelance platform
There's a common misconception among first-time software buyers.
"I'm paying ₩11 million for this project, so I'll get ₩11 million worth of development work."
Unfortunately, that's not how it works. Once VAT and platform fees are stripped away, the amount that actually reaches the development team is far less than most clients expect. Let's break it down with real numbers.
First, VAT comes off the top
If your contract reads "₩11,000,000 including VAT," ₩1,000,000 of that is already earmarked for taxes — not development.
| Item | Amount |
|---|---|
| Total contract value (VAT included) | ₩11,000,000 |
| Net service fee (actual development cost) | ₩10,000,000 |
| VAT (10%) | ₩1,000,000 |
VAT goes to the government — not the developer. So the starting point for actual development spend is already ₩10,000,000.
Then, platform fees take another cut
Most freelance platforms charge 20–25% of the net service fee — and that fee itself is subject to an additional 10% VAT. Since this is a direct cost to the development firm, every won of it comes straight out of what they actually receive.
At a 20% platform fee
| Item | Amount |
|---|---|
| Net service fee | ₩10,000,000 |
| Platform fee (20%) | ₩2,000,000 |
| VAT on platform fee (10%) | ₩200,000 |
| Total fee burden on developer | ₩2,200,000 |
| Developer take (net fee basis) | ₩8,000,000 |
| Effective cash received | ₩7,800,000 |
At a 25% platform fee
| Item | Amount |
|---|---|
| Net service fee | ₩10,000,000 |
| Platform fee (25%) | ₩2,500,000 |
| VAT on platform fee (10%) | ₩250,000 |
| Total fee burden on developer | ₩2,750,000 |
| Developer take (net fee basis) | ₩7,500,000 |
| Effective cash received | ₩7,250,000 |
https://www.exapeaksoft.com/tools/fee-calculatorHere's the bottom line
You think you're commissioning an ₩11 million project.
But the development team only has ₩7.25–7.8 million to actually build it with.
You paid ₩11 million — but the project gets executed like a ₩7 million one.
If this were just an abstract number gap, it might not matter much. But in practice, that difference directly impacts quality, timelines, and communication. Developers are people running real businesses. When the money they actually receive shrinks, so does the time and talent they can dedicate to your project.
So what should clients do?
1. Consider contracting directly — without a platform middleman
Freelance platforms offer real convenience. But ask yourself honestly: are you getting back fair value for those fees every single time? By working directly with a trusted development firm, you can unlock significantly more development capacity for the same budget.
3. Choose a partner who openly discusses net payouts
A development firm that transparently shares its cost structure — and commits to delivering the best possible outcome within it — is one you can truly trust. Be cautious of firms that dodge or gloss over conversations about fees and taxes.
Closing thoughts
The tighter your budget, the more critical it is to understand exactly where your money goes. If you're spending ₩11 million and want ₩11 million worth of results, start by tracing every won that leaks out before it reaches the people doing the work.
엑사피크소프트솔루션즈 contracts directly with clients — no intermediary platforms. We're committed to making sure as much of your budget as possible goes into actual development, and we walk you through our cost structure with full transparency from day one.
Choosing the right development partner isn't just about reviewing portfolios. Look for a firm that's honest about the money — that's where real trust begins.