Tutorac service fees and what you actually pay

A common question when you see a tutor’s rate or get a milestone amount: is there extra on top? On Tutorac, the answer for learners is simple — you pay the agreed amount and nothing more. The service fee that runs the platform is taken from the tutor’s earnings, not added to your bill. Here’s the full picture.

What you actually pay

For a live training, you pay the milestone amount shown in the hire form — nothing more.
If the milestone says ₹5,000 (or $60), that is the amount that gets charged to your card or UPI.
There is no separate “learner service fee” added at checkout.
Applicable taxes (e.g., GST in India) are collected at payment time and shown clearly on your receipt.

Where the service fee comes in (tutor’s side)

Tutorac runs the platform, the escrow, the dispute resolution, the Drive, the messaging, and everything else — that costs money to run. The service fee is what keeps it going. But on Tutorac, that fee is paid by the tutor out of their earnings, not by you:

When you click Release Payment on a milestone, Tutorac takes its service fee from the milestone amount before transferring the rest to the tutor’s payout balance.
The tutor sees both the gross (what you paid) and the net (what they receive) in their own dashboard.
The exact percentage is in the tutor’s agreement. As a learner, you don’t need to track it — it doesn’t affect what you pay.

Payment processing & taxes

Payment processor charges — absorbed by Tutorac. The amount you fund doesn’t change because you used a credit card vs UPI vs net banking.
India accounts — GST is added on top of the milestone amount at payment time per Indian tax law and shown on your invoice.
US / other accounts — sales tax/VAT applies based on your jurisdiction; if applicable, it’s shown at checkout and on the invoice.
Foreign-exchange conversion — if your card’s currency differs from your account currency (e.g., USD card on an INR account), your bank/network handles conversion at their rate. Tutorac doesn’t mark this up.

Video Courses pricing

Video courses (pre-recorded) work the same way — the listed price is what you pay, plus any applicable tax.
The tutor’s share is paid out of the listed price minus the service fee, just like a milestone release.

Example breakdown

India learner hiring at ₹5,000 / milestone (GST 18%):

You see at checkout: ₹5,000 milestone + ₹900 GST = ₹5,900 total charge.
Tutorac holds ₹5,000 in escrow; the GST is remitted to the tax authority.
When you release the milestone, the tutor receives ₹5,000 minus their service fee (paid out of their share).
Your card statement shows ₹5,900; your invoice shows the GST split out.

US learner hiring at $60 / milestone:

You see at checkout: $60 milestone + any applicable state sales tax = total charge.
Tutorac holds the $60 milestone; the tax (if any) goes to the relevant authority.
When you release, the tutor receives $60 minus their service fee.

FAQs

Do I pay any fee on refunds?

No — refunds processed through Tutorac don’t charge you anything additional. Your bank may take a day or two longer than the deposit to credit the refund, but the amount they credit is the full eligible refund per the cancellation policy.

Why are some tutors’ profile rates lower than their final hire amounts?

Profile rates are usually for hourly work — if your scope is custom (specific deliverables, certifications, bigger commitment), tutors often quote a different total. This isn’t a hidden fee; it’s a negotiated price.

Can the tutor pass their service fee onto me by raising their rate?

Effectively, the tutor sets a rate that works for them after fees — just like any service provider on any platform. From your side, the amount is the amount. The structural protection is that you can compare tutors and rates openly.

Last updated: 29 May 2026