Upwork vs. Toptal: Which Pays Better for Freelance Developers in 2025?

If you’re a freelance developer, you’ve probably wondered: “Which platform helps me earn more—Upwork or Toptal?”

Both are giants in the freelance world, but they cater to very different audiences. Upwork is like a bustling marketplace with thousands of jobs, while Toptal is an exclusive club for top-tier talent. But when it comes to freelance developer pay, which one puts more money in your pocket?

In this no-nonsense guide, we’ll break down:
✔ How Upwork and Toptal pay structures work
✔ Real earnings data from developers on both platforms
✔ Hidden costs and fees that eat into your income
✔ Which platform suits your skills and goals

By the end, you’ll know exactly where to focus your time to maximize your freelance income.

1. Upwork vs. Toptal: A Quick Overview

What is Upwork?

• The basics: A global freelance marketplace with over 3 million jobs posted yearly.

• Who it’s for: Developers of all levels—from beginners to experts.

• Jobs available: Web development, mobile apps, DevOps, QA testing, etc.

• Key features: Hourly/fixed-price contracts, escrow payments, client reviews.

What is Toptal?

• The basics: An exclusive network for the top 3% of freelancers.

• Who it’s for: Senior developers with proven expertise (5+ years experience).

• Jobs available: High-end projects (enterprise software, fintech, AI/ML).

• Key features: Rigorous vetting, handpicked clients, premium rates.

2. How Payment Works on Upwork vs. Toptal

A. Upwork’s Payment Model

• Hourly rates: Clients pay based on tracked hours (using Upwork’s time tracker).

• Fixed-price contracts: Agree on a project fee upfront, paid in milestones.

• Fees:

  • 20% for the first $500 billed with a client.

  • 10% for lifetime billings between 500.01and500.01and10,000.

  • 5% for billings over $10,000 with a client.

Example:
If you charge $50/hour and work 100 hours for a client:

• First 500→500→500 - 20% fee = $400

• Next 9,500→9,500→9,500 - 10% fee = $8,550

• Total earnings = $8,950 (before taxes).

B. Toptal’s Payment Model

• Hourly/weekly/monthly rates: Clients pay Toptal, which then pays you.

• Fees: Toptal doesn’t publicly disclose its cut, but industry estimates suggest:

  • Freelancers keep 60–80% of what clients pay.

  • Clients pay 60–60–200+/hour (Toptal pockets the difference).

Example:
If Toptal charges a client $150/hour and you keep 70%:

• Your earnings = **105/hour∗∗(Toptaltakes105/hour∗∗(Toptaltakes45/hour).

3. Real Earnings: What Freelance Developers Actually Make

Upwork Developer Earnings

Pros:

• More opportunities: Thousands of jobs across niches.

• Flexibility: Work with startups, SMEs, or long-term clients.

Cons:

• High competition: Low rates for generic skills (e.g., WordPress).

• Fee fatigue: 20% fees hurt small projects.

Toptal Developer Earnings

Pros:

• Premium clients: Fortune 500 companies, Silicon Valley startups.

• Less bidding: Toptal matches you with projects.

Cons:

• Strict vetting: Only 3% pass the screening (tests, interviews, projects).

• Less flexibility: Fewer short-term gigs.

4. Hidden Costs That Affect Your Take-Home Pay

Upwork’s Hidden Costs

• Bidding wars: Spending hours applying for jobs with no guarantee of payment.

• Payment delays: Clients can dispute hours, holding up your cash flow.

• Promoted listings: Paying to boost proposals (up to $5/application).

Toptal’s Hidden Costs

• Unpaid screening: The vetting process takes 2–5 weeks (no pay).

• Non-compete clause: Can’t work directly with Toptal clients off-platform.

• Pressure to perform: High client expectations mean longer hours.

5. Which Platform Pays More? The Verdict

Choose Upwork if:

• You’re new to freelancing or building a portfolio.

• You want variety (short projects, different industries).

Choose Toptal if:

• You have 5+ years of elite coding experience.

• You want predictable, high-paying clients without bidding.

6. How to Maximize Earnings on Both Platforms

Winning on Upwork

• Specialize: Charge more for niche skills (e.g., blockchain, AI/ML).

• Rise the ranks: Hit “Top Rated” status to attract premium clients.

• Negotiate retainers: Convert hourly gigs into monthly contracts.

Succeeding on Toptal

• Ace the screening: Practice algorithms, system design, and soft skills.

• Focus on long-term projects: Retainers pay better than one-off tasks.

• Network internally: Request referrals to high-budget clients.

7. The Hybrid Approach: Use Both Platforms

Many top developers use Upwork for quick gigs and Toptal for steady income.

Example:

• A full-stack developer earns 8k/monthonToptal(30hrs/week)and8k/monthonToptal(30hrs/week)and3k/month on Upwork (10 hrs/week).

• Total: $11k/month with diversified income streams.

FAQ: Upwork vs. Toptal Pay Questions

❓ Can I earn $100k+/year on Upwork?

Yes—but focus on long-term clients to reduce fees and secure repeat work.

❓ Does Toptal allow negotiation?

Rarely. Rates are often set based on your screening performance.

❓ Which has better job security?

Toptal (clients are vetted), but Upwork offers more backup options.

❓ Is Toptal worth the unpaid screening?

Only if you’re confident in your skills. For seniors, the ROI is huge.

Need Help Boosting Your Freelance Income?

At SharpEncode, we help developers optimize their freelance careers—whether you’re choosing platforms, negotiating rates, or scaling your business.

📩 Book a free career strategy session today!
👉 https://www.sharpencode.com/home/contact

Final Thoughts

Upwork vs. Toptal isn’t about “better” or “worse”—it’s about fit. Upwork offers freedom and volume, while Toptal delivers prestige and premium pay.

The key to earning more? Specialize, deliver insane value, and ditch low-ball clients. Whether you pick one platform or both, focus on skills that make you irreplaceable.

Ready to level up? Polish your profile, ace your next interview, and start charging what you’re worth. 💸