{
  "slug": "online-tutoring-platform-take-rate",
  "title": "Online Tutoring Platform Take-Rate Calculator",
  "heading": "Tutoring Marketplace Take-Rate Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/online-tutoring-platform-take-rate",
  "summary": "What a marketplace's commission actually costs a tutor annually, and the break-even direct-booking rate.",
  "description": "Tutoring marketplaces charge commissions that often taper as a tutor logs more hours with a client, but many tutors never calculate the annual dollar cost of that taper or compare it to what direct booking (with their own payment processing and no lead generation) would net. This calculator computes annual commission cost at your volume and the discount you could offer for direct booking while still coming out ahead.",
  "formula": "Annual commission = annual billed revenue × average commission rate. Break-even direct rate = current rate × (1 − commission rate) ÷ (1 − processing fee).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=online-tutoring-platform-take-rate",
  "inputs": [
    {
      "id": "annualRevenue",
      "label": "Annual gross tutoring revenue on platform",
      "kind": "number",
      "hint": null,
      "default": 42000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "commissionRate",
      "label": "Average platform commission",
      "kind": "number",
      "hint": null,
      "default": 20,
      "unit": "%",
      "min": 0,
      "max": 60
    },
    {
      "id": "currentRate",
      "label": "Current listed hourly rate",
      "kind": "number",
      "hint": null,
      "default": 55,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "directProcessingFee",
      "label": "Direct payment processing fee",
      "kind": "number",
      "hint": null,
      "default": 3,
      "unit": "%",
      "min": 0,
      "max": 10
    }
  ],
  "outputs": [
    {
      "id": "annualCommission",
      "label": "Annual commission paid to platform",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "directBreakEven",
      "label": "Break-even rate if booking direct",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "directDiscount",
      "label": "Discount you could offer and still net the same",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "netKeepPct",
      "label": "% of platform revenue you currently keep",
      "format": "percent",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Annual gross tutoring revenue on platform: 42000 $",
      "Average platform commission: 20 %",
      "Current listed hourly rate: 55 $",
      "Direct payment processing fee: 3 %"
    ],
    "outputs": [
      "Annual commission paid to platform: $8,400",
      "Break-even rate if booking direct: $45.36",
      "Discount you could offer and still net the same: $9.64",
      "% of platform revenue you currently keep: 80.0%"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter annual gross tutoring revenue on platform ($).",
      "Enter average platform commission (%).",
      "Enter current listed hourly rate ($).",
      "Enter direct payment processing fee (%).",
      "Read your annual commission paid to platform on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "annualRevenue": 25000,
        "commissionRate": 12,
        "currentRate": 33,
        "directProcessingFee": 1.7999999999999998
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "annualRevenue": 42000,
        "commissionRate": 20,
        "currentRate": 55,
        "directProcessingFee": 3
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "annualRevenue": 67000,
        "commissionRate": 32,
        "currentRate": 88,
        "directProcessingFee": 4.800000000000001
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Is moving clients off-platform against the rules?",
      "a": "Most platforms explicitly prohibit soliciting clients to move off-platform while the relationship originated there, and some ban accounts for it — check your specific platform's terms before acting, since this is a contractual and sometimes legal issue, not just a financial one."
    },
    {
      "q": "Why would a tutor ever want to stay on a high-commission platform?",
      "a": "Lead generation, payment handling, scheduling tools, and dispute protection all have real value, especially for tutors who don't want to run a small business on the side. The commission is partly a marketing and admin cost, not pure margin loss."
    },
    {
      "q": "How do taper structures change this calculation?",
      "a": "If commission drops after a client's first N hours, compute a blended rate using your actual mix of new versus repeat client hours rather than the platform's headline commission percentage, since the effective rate is usually lower than advertised for tutors with many repeat clients."
    },
    {
      "q": "Does the discount output mean I should always undercut my platform rate?",
      "a": "It shows the ceiling discount that keeps your take-home flat — you don't have to use all of it. Many tutors offer half that discount for direct booking, keeping some of the margin gain rather than passing all of it to the client."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/tutor-hourly-rate-utilization",
    "https://www.revenuelab.fyi/toolbox/tutoring-package-discount"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Online Tutoring Platform Take-Rate Calculator (https://www.revenuelab.fyi/toolbox/online-tutoring-platform-take-rate)"
}