How much of our crowdfunding will we keep?
Take the platform fee, payment fees, the cost of making and posting rewards, VAT and other campaign costs from the money pledged, and see what is left.
In reward-based crowdfunding, supporters pledge money and get a reward, often the product you plan to make. In donation-based crowdfunding they give and get nothing back. Either way, less reaches you than people pledge. The platform takes a fee and payment fees before it pays you, then you pay to make, pack and post the rewards.
If you are VAT-registered, a pledge that buys a reward with real value counts as a sale, so part of it is VAT you pay to HMRC. A donation where the supporter gets nothing back, or only a thank-you, carries no VAT. This calculator shows what you keep from the whole campaign, and from an average reward pledge.
Results
- Platform fee
- £1,500
- Payment fees
- £980
- Making, packing and posting rewards
- £11,900
- VAT on reward pledges
- £4,667
- Other campaign costs
- £1,500
An average reward pledge
- Pledged
- £80.00
- VAT inside it
- − £13.33
- Platform and payment fees
- − £6.60
- Making, packing and posting
- − £34.00
- Left from each reward
- £26.07
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Worked example: £30,000 pledged by 400 supporters for a new product
A made-up example, not a quote from any platform: a 5% platform fee, payment fees of 3% plus 20p a pledge, 350 rewards costing £28 each to make and £6 to pack and post, £28,000 of the money pledged for rewards, a VAT-registered business at 20%, and £1,500 spent on a video and advertising.
- Money pledged
- £30,000
- Platform fee: 5% of that
- − £1,500
- Payment fees: 3% plus £0.20 on each of 400 pledges
- − £980
- Paid out by the platform
- £27,520
- Rewards: 350 at £28 to make and £6 to pack and post
- − £11,900
- VAT: 20 ÷ 120 of the £28,000 pledged for rewards
- − £4,667
- Other campaign costs
- − £1,500
- What you keep
- £9,453
- As a share of the money pledged
- 31.5%
On an average reward pledge of £80.00, £13.33 is VAT, £6.60 goes in fees and £34.00 makes and posts the reward, leaving £26.07.
Worth knowing
- Reward platforms often take a fee of around 5% of the money raised, and payment processing adds around 3% plus a fixed amount on each pledge. Some donation platforms charge no platform fee but still take payment fees, and may ask donors for an optional tip.
- On an all-or-nothing platform, if you miss your target you receive nothing. Some platforms then charge no fees at all. Check the platform's own terms.
- If you are VAT-registered, VAT is due when you receive the money, not when you send the reward. At the standard rate of 20%, the VAT inside a pledge is one-sixth of it.
- Pledges for rewards count towards your taxable turnover. If it goes over £90,000 in 12 months, or you expect it to in the next 30 days, you must register for VAT. Donations with nothing back do not count.
- The VAT on a platform's own fees depends on the service it provides. Check whether the fees you are quoted include VAT.
- If rewards go out months after the campaign closes, cost them at what making and postage will cost then, and leave room for replacements and supporters overseas.
Routes this works for
Sources
- HMRC VAT Finance Manual VATFIN5550: crowdfunding · checked 9 October 2026
- HMRC: VAT guide (VAT Notice 700), section 7.3.1 VAT fractions · checked 9 October 2026
- HMRC: VAT on instalments, deposits and credit sales (tax point for advance payments) · checked 9 October 2026
- GOV.UK: When to register for VAT · checked 9 October 2026
- GOV.UK: VAT rates · checked 9 October 2026
- Indiegogo: Fees (provider's own terms: 5% platform fee, 3% plus 0.20 a payment, no fees if the goal is not reached) · checked 9 October 2026
- GoFundMe UK: Pricing (provider's own terms: no platform fee, transaction fees, optional tips) · checked 9 October 2026
Something wrong or out of date?
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