{"id":177,"date":"2026-05-29T12:11:58","date_gmt":"2026-05-29T12:11:58","guid":{"rendered":"https:\/\/tutorac.com\/help-center\/2026\/05\/29\/tutorac-service-fees-and-what-you-actually-pay\/"},"modified":"2026-05-29T12:11:58","modified_gmt":"2026-05-29T12:11:58","slug":"tutorac-service-fees-and-what-you-actually-pay","status":"publish","type":"post","link":"https:\/\/tutorac.com\/help-center\/2026\/05\/29\/tutorac-service-fees-and-what-you-actually-pay\/","title":{"rendered":"Tutorac service fees and what you actually pay"},"content":{"rendered":"\n<p class=\"has-text-color wp-block-paragraph\" style=\"color:#374151;font-style:italic;font-weight:400\">A common question when you see a tutor&rsquo;s rate or get a milestone amount: is there extra on top? On Tutorac, the answer for learners is simple &mdash; you pay the agreed amount and nothing more. The service fee that runs the platform is taken from the tutor&rsquo;s earnings, not added to your bill. Here&rsquo;s the full picture.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"in-this-article\">In this article<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"#you-pay\">What you actually pay<\/a><\/li><li><a href=\"#tutor-side\">Where the service fee comes in (tutor&rsquo;s side)<\/a><\/li><li><a href=\"#taxes\">Payment processing &amp; taxes<\/a><\/li><li><a href=\"#video\">Video Courses pricing<\/a><\/li><li><a href=\"#example\">Example breakdown<\/a><\/li><li><a href=\"#faqs\">FAQs<\/a><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"you-pay\">What you actually pay<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>For a live training, you pay the <strong>milestone amount<\/strong> shown in the hire form &mdash; nothing more.<\/li><li>If the milestone says &#8377;5,000 (or $60), that is the amount that gets charged to your card or UPI.<\/li><li>There is <strong>no separate &ldquo;learner service fee&rdquo;<\/strong> added at checkout.<\/li><li>Applicable taxes (e.g., GST in India) are collected at payment time and shown clearly on your receipt.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"tutor-side\">Where the service fee comes in (tutor&rsquo;s side)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Tutorac runs the platform, the escrow, the dispute resolution, the Drive, the messaging, and everything else &mdash; 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:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>When you click <strong>Release Payment<\/strong> on a milestone, Tutorac takes its service fee from the milestone amount before transferring the rest to the tutor&rsquo;s payout balance.<\/li><li>The tutor sees both the gross (what you paid) and the net (what they receive) in their own dashboard.<\/li><li>The exact percentage is in the tutor&rsquo;s agreement. As a learner, you don&rsquo;t need to track it &mdash; it doesn&rsquo;t affect what you pay.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"taxes\">Payment processing &amp; taxes<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Payment processor charges<\/strong> &mdash; absorbed by Tutorac. The amount you fund doesn&rsquo;t change because you used a credit card vs UPI vs net banking.<\/li><li><strong>India accounts<\/strong> &mdash; GST is added on top of the milestone amount at payment time per Indian tax law and shown on your invoice.<\/li><li><strong>US \/ other accounts<\/strong> &mdash; sales tax\/VAT applies based on your jurisdiction; if applicable, it&rsquo;s shown at checkout and on the invoice.<\/li><li><strong>Foreign-exchange conversion<\/strong> &mdash; if your card&rsquo;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&rsquo;t mark this up.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"video\">Video Courses pricing<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Video courses (pre-recorded) work the same way &mdash; the listed price is what you pay, plus any applicable tax.<\/li><li>The tutor&rsquo;s share is paid out of the listed price minus the service fee, just like a milestone release.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"example\">Example breakdown<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>India learner hiring at &#8377;5,000 \/ milestone (GST 18%):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>You see at checkout: &#8377;5,000 milestone + &#8377;900 GST = <strong>&#8377;5,900 total charge<\/strong>.<\/li><li>Tutorac holds &#8377;5,000 in escrow; the GST is remitted to the tax authority.<\/li><li>When you release the milestone, the tutor receives &#8377;5,000 minus their service fee (paid out of their share).<\/li><li>Your card statement shows &#8377;5,900; your invoice shows the GST split out.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>US learner hiring at $60 \/ milestone:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>You see at checkout: $60 milestone + any applicable state sales tax = <strong>total charge<\/strong>.<\/li><li>Tutorac holds the $60 milestone; the tax (if any) goes to the relevant authority.<\/li><li>When you release, the tutor receives $60 minus their service fee.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"faqs\">FAQs<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Do I pay any fee on refunds?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No &mdash; refunds processed through Tutorac don&rsquo;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.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why are some tutors&rsquo; profile rates lower than their final hire amounts?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Profile rates are usually for hourly work &mdash; if your scope is custom (specific deliverables, certifications, bigger commitment), tutors often quote a different total. This isn&rsquo;t a hidden fee; it&rsquo;s a negotiated price.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can the tutor pass their service fee onto me by raising their rate?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Effectively, the tutor sets a rate that works for them after fees &mdash; 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.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Related articles<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"\/help-center\/2026\/05\/29\/how-pricing-works-on-tutorac\/\">How pricing works on Tutorac<\/a><\/li><li><a href=\"\/help-center\/2026\/05\/29\/currency-taxes-and-pricing-in-your-region-on-tutorac\/\">Currency, taxes, and pricing in your region on Tutorac<\/a><\/li><li><a href=\"\/help-center\/2026\/05\/29\/reading-your-invoice-and-payment-receipt-on-tutorac\/\">Reading your invoice and payment receipt on Tutorac<\/a><\/li><li><a href=\"\/help-center\/2026\/05\/29\/how-to-cancel-a-hire-or-batch-on-tutorac\/\">How to cancel a hire or batch on Tutorac<\/a><\/li><\/ul>\n\n\n\n<p class=\"has-text-color wp-block-paragraph\" style=\"color:#9ca3af;font-size:13px\">Last updated: 29 May 2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tutorac&#8217;s service fee is paid by the tutor out of their milestone earnings, not added on top of what learners pay. What you actually pay (milestone amount + applicable tax), where the service fee fits in on the tutor side, FX and processing handling, and a full example breakdown in INR and USD.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32,42],"tags":[],"class_list":["post-177","post","type-post","status-publish","format-standard","hentry","category-for-learners","category-learners-pricing-milestones"],"_links":{"self":[{"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/posts\/177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/comments?post=177"}],"version-history":[{"count":0,"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/posts\/177\/revisions"}],"wp:attachment":[{"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/media?parent=177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/categories?post=177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tutorac.com\/help-center\/wp-json\/wp\/v2\/tags?post=177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}