Common Crowdfunding Fees and Costs to Consider

Crowdfunding is a way of raising capital by collecting small contributions from a big pool of individuals. In exchange for hosting your campaign and processing contributor payments, the platform may charge crowdfunding fees, which naturally eat into your payouts. Part of sifting through crowdfunding’s advantages and disadvantages is weighing the percentage fees against your fundraising potential.

Peak Design Founder and CEO Peter Dering, for instance, has raised more than $60 million through Kickstarter campaigns. Getting money upfront instead of waiting for traditional retail cycles has helped the company keep building without bringing on investors. It has been “extremely beneficial,” Dering said on Shopify Masters. 

This guide walks through crowdfunding fee structures, costs you may encounter, and what some of the best crowdfunding sites charge. 

Common crowdfunding fees and costs

• Platform fee
• Subscription fee
• Recurring contribution fee
• Payment processing fee
• Currency conversion fee
• Withdrawal or payout fee

Crowdfunding isn’t free, even when a platform doesn’t charge you to launch a campaign. Your costs depend partly on the crowdfunding model you use. Rewards-based platforms may charge a percentage of the total funds collected, for example, while membership-based platforms may charge a percentage of each recurring payment. Other crowdfunding sites may have no platform fee.

Here are some of the common fees you’ll come across:

Platform fee

This type of fee pays the platform to host your campaign and provide fundraising tools. It’s usually calculated as a percentage of the total money you raise, often ranging between 5% and 10%. Kickstarter charges 5%, for example. 

Some crowdfunding sites only charge the fee when a goal is successfully funded, while others, such as GoFundMe, don’t charge a platform fee at all.

Subscription fee

Some crowdfunding platforms charge a recurring fee to use their fundraising tools instead of, or in addition to, charging a percentage of the money raised. The fee can vary widely, anywhere from $25 to $180 per month or more, depending on the platform.

Recurring contribution fee

Some crowdfunding models allow backers to provide ongoing support through recurring donations. Platforms may charge a percentage of each recurring membership or payment, such as 5%. 

Payment processing fee

Crowdfunding platforms typically work with a payment processor to facilitate fund transfers, charging a standard processing fee. The fee covers the costs associated with accepting electronic payments, such as credit and debit cards and digital wallets. It’s often charged as a percentage of each contribution plus a fixed amount, such as 3% plus 30¢.

Currency conversion fee

If a backer pays in a currency that differs from the campaign’s local currency, the platform or payment processor may charge a fee to convert the payment. This may be wrapped into the payment processing fee or broken out separately. 

Withdrawal or payout fee

The crowdfunding site may subtract a withdrawal fee from your proceeds when you transfer them to a bank account or another payout method. These are more common on platforms built around ongoing memberships or recurring support. The fee usually varies with the platform, the payout method, and the supporter’s currency. 

Comparison of crowdfunding platform fees

Crowdfunding fees can vary significantly from one platform to another. Some services take a percentage of the money you raise, while others charge a monthly subscription or rely primarily on payment processing fees. Here’s how fees compare across several popular crowdfunding platforms: