Every invoicing-software pricing page is trying to answer the same five questions, and most make it hard to find the answers. Use this framework to compare any two tools in 5 minutes: 1) what is the base price, 2) what is the take rate, 3) what scales with usage, 4) what is locked behind the next tier, 5) what happens when I cancel.
The 5 questions, in detail
1. What is the base price?
Look for the number on the headline tier, the one the marketing page leads with. In the UK, this is often shown in USD ($7, $12, $25) and billed in USD with your card handling the FX. Note the billing interval — monthly prices are always higher than annual. A $7/month tool is often $5/month if you pay annually.
2. What is the take rate?
The take rate is the percentage the software takes from every payment that flows through it. If the tool uses Stripe to process card payments, the take rate is usually Stripe's rate (1.5% + 20p for UK cards, 2.9% + 30¢ for international cards). The tool itself takes zero on top of that. Some tools mark up Stripe. Some tools use their own payment processor with a higher take rate. Some tools take 0% on bank transfer but 3% on card.
3. What scales with usage?
The usage dimension varies. Common shapes: per invoice sent (e.g. £0.20 per invoice over 100/month), per client, per transaction, per user seat, per company or entity. A tool with $7/month and no usage scaling is cheaper than $5/month with $0.50 per invoice, once you send more than 4 invoices a month.
4. What is locked behind the next tier?
Every pricing page has at least one feature that is only on the second tier. Common gates: the number of clients, the number of companies, recurring invoices, multi-currency, VAT handling, custom branding, API access, priority support.
5. What happens when I cancel?
The real-world cost of leaving a tool includes: data export (is it free, in a useful format), notice period, pro-rated refunds, reactivation. Tools that make it hard to leave are tools you should leave.
A worked example
Comparing two tools on a freelancer sending 30 invoices/month at an average of £1,200 each. Tool A is $7/month with 0% take rate; Tool B is $5/month with 2.9% + 30¢ take rate and $0.50 per invoice above 5/month. The annual cost difference is roughly $84 vs $740.
- Tool A annual cost: $7 × 12 = $84
- Tool B annual cost: $60 base + 18 card payments × £1,200 × 2.9% + 30¢ = $740
- Difference: $656 in favour of Tool A, on the same workload
Frequently asked
What is a "take rate" on an invoicing tool?
The percentage the software takes from every payment that flows through it, on top of the payment processor's fee. A 0% take rate means the tool only charges the base subscription.
What is the most common hidden cost in freelancer software?
Per-invoice fees above a usage limit, per-seat fees, and percentage markups on payment processing. All three can dwarf the headline monthly price.
Written by Saad.