Introduction
You charge $35/hour on Preply. But what do you actually earn?
After commission, trial lessons, payment processing, and other fees, your true hourly rate is probably much lower than you think. Understanding this number is essential for pricing decisions and financial planning.
Let's calculate your real earnings.
The True Hourly Rate Formula
Your true hourly rate isn't your listed price. It's:
True Hourly Rate = (Gross Revenue - All Fees) ÷ Total Hours Worked
"Total hours worked" includes lesson time plus admin time (scheduling, prep, communication).
Step 1: Calculate Platform Commission
Preply Commission by Tier
| Hours Taught | Commission | $35 Lesson Becomes | |--------------|-----------|-------------------| | 0-19 | 33% | $23.45 | | 20-49 | 28% | $25.20 | | 50-199 | 25% | $26.25 | | 200-399 | 22% | $27.30 | | 400+ | 18% | $28.70 |
iTalki/Verbling (15% flat)
| Listed Rate | After Commission | |-------------|-----------------| | $25 | $21.25 | | $30 | $25.50 | | $35 | $29.75 | | $40 | $34.00 |
Step 2: Account for Trial Lessons
On Preply, you receive $0 for trial lessons. If you teach 50 lessons/month with 5 trials:
- 45 paid lessons × $35 = $1,575 gross
- 5 trial lessons × $35 = $175 lost
Your effective rate drops because you're working unpaid hours.
Impact calculation:
Lost trial revenue = Trial lessons × Hourly rate
Adjusted gross = (Paid lessons × Rate) - Commission
True rate = Adjusted gross ÷ Total lessons taught
Example:
- 45 paid lessons after 25% commission: $1,181.25
- 5 unpaid trial lessons: $0
- Total lessons: 50
- True rate per lesson hour: $23.63 (not $26.25)
Step 3: Include Payment Processing
Platforms pay through services that charge fees:
| Service | Typical Fee | On $1,000 | |---------|------------|-----------| | PayPal | 2.5% | $25 | | Payoneer | 2% | $20 | | Bank transfer | 1-3% | $10-30 |
Add another 2% reduction to your true rate.
Step 4: Factor in Package Discounts
If students buy packages with discounts (and that discount comes from your share):
- 10-lesson package, 6% discount
- You earn 94% of your per-lesson rate
- On $35: You get ~$24.68 (after 25% commission on discounted price)
Step 5: Include Admin Time
Teaching isn't just lesson time. Calculate your total time per student:
| Activity | Time per Lesson | |----------|----------------| | Actual lesson | 60 min | | Lesson prep | 10-15 min | | Notes/follow-up | 5-10 min | | Communication | 5-10 min | | Total | 80-95 min |
If you earn $25 for 60 minutes of teaching but spend 90 minutes total, your true hourly rate is:
$25 ÷ 1.5 hours = $16.67/hour
Complete Calculation Example
Scenario: Preply Tutor, $35/hour, 25% tier
Monthly activity:
- 50 total lessons
- 5 trial lessons (unpaid)
- 45 paid lessons
- Average 80 minutes work per lesson
Calculation:
| Step | Amount | |------|--------| | Gross paid lessons | $1,575 | | Commission (25%) | -$393.75 | | Trial lessons | -$175 equivalent work | | Net from Preply | $1,181.25 | | Payment fee (2%) | -$23.63 | | Take-home | $1,157.62 |
True hourly calculations:
| Method | Calculation | Rate | |--------|-------------|------| | Per lesson hour | $1,157.62 ÷ 50 | $23.15/hour | | Per work hour (80 min/lesson) | $1,157.62 ÷ 66.7 | $17.36/hour |
Listed rate: $35/hour True rate: $17.36-$23.15/hour
That's 34-50% less than your advertised price.
Quick Reference: True Rates by Platform
Preply (assuming 25% commission, 10% trials, 2% payment fees)
| Listed | True (lesson hour) | True (work hour) | |--------|-------------------|-----------------| | $25 | $16.50 | $12.38 | | $30 | $19.80 | $14.85 | | $35 | $23.10 | $17.33 | | $40 | $26.40 | $19.80 |
iTalki/Verbling (15% commission, 2% payment fees)
| Listed | True (lesson hour) | True (work hour) | |--------|-------------------|-----------------| | $25 | $20.75 | $15.56 | | $30 | $24.90 | $18.68 | | $35 | $29.05 | $21.79 | | $40 | $33.20 | $24.90 |
Direct Booking (~3% processing only)
| Listed | True (lesson hour) | True (work hour) | |--------|-------------------|-----------------| | $25 | $24.25 | $18.19 | | $30 | $29.10 | $21.83 | | $35 | $33.95 | $25.46 | | $40 | $38.80 | $29.10 |
What This Means for Pricing
Setting Rates to Hit Your Target
If you want to actually earn $30/hour (per lesson hour):
| Platform | Commission | Price to Set | |----------|-----------|--------------| | Preply (new) | 33% | $45 | | Preply (veteran) | 18% | $37 | | iTalki | 15% | $35 | | Direct | 3% | $31 |
The Direct Booking Advantage
At $30/hour direct vs. $35/hour on Preply (25% commission):
| Metric | Preply $35 | Direct $30 | |--------|-----------|------------| | Student pays | $35 | $30 | | You receive | $26.25 | $29.10 | | Student savings | - | $5 | | Your gain | - | $2.85 |
Both parties win with direct booking.
Action Steps
1. Calculate Your Current True Rate
Use this month's numbers:
- Total lessons (including trials)
- Total net received (after all fees)
- Divide: Net ÷ Lessons = True rate per lesson hour
2. Decide Your Target
What do you actually want to earn per hour of work (including prep)?
3. Price Accordingly
Work backward from your target to set platform rates that actually achieve it.
4. Consider the Mix
Direct bookings have much higher true rates. Even a 30% direct mix significantly improves your overall earnings.
Know Your Real Numbers
Understanding your true hourly rate is the first step to improving it. TutorLingua helps you track earnings across all channels and maximize your actual take-home pay.
See how much more you could earn →
También disponible en español: Calculando Tu Tarifa Horaria Real
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