We encourage creators to research all costs involved in completing their project prior to launching. Your funding goal should include the amount you need to complete your project (costs of making and shipping rewards) and fees associated with running a project on Kickstarter. Once you launch your project, you cannot change your funding goal and deadline..
It helps to make a list of all the materials, resources, and expenses (such as shipping costs) you'll need to complete your project, and the estimated costs for each. Research how much things will cost, and consider how your expenses could change if you had to switch suppliers or fulfillment partners (it never hurts to have a back-up plan). Keep in mind that additional fees collected for shipping will be reflected in your funding amount while your project is live.
We’ve also compiled a list of services that can aid in the process of completing your project.
Check out this video for insight into how other creators have estimated their funding goals:
If a project reaches its funding goal, Kickstarter applies a 5% fee to the funds collected for creators. Stripe, our payments processor will also apply payment processing fees (roughly 3-5%). The complete fee breakdowns are available here.
If a project does not reach its funding goal, no fees are collected.
Funds raised on Kickstarter are generally subject to taxes. How much you owe can vary based on a number of factors, including the deduction of project-related expenses. We highly recommend talking to an accountant or tax advisor. They can guide you through your particular tax scenario in the most advantageous way possible.
While we can't offer tax advice, we have compiled a guide for financial professionals who may not be familiar with Kickstarter.
Still unsure about your funding goal? The Funding Calculator, which you can access via the ‘Basics’ section of your project build, is meant to help creators visualize the potential costs associated with running a project on Kickstarter, including fees and taxes, on top of how much money you will need to bring your creative project to life.
To use the Funding Calculator, follow the steps below.
- Click “Use our calculator to estimate a funding goal” within the Basics section of Project Build.
- Enter how much money you think you’ll need to create your project and fulfill all of your rewards.
- Enter in a tax percentage, or use the slider, to account for taxes associated with your project. As we’re unable to provide tax advice, we recommend you consult with a tax advisor for more guidance.
- Once you enter a funding amount and select a tax percentage, Kickstarter’s fee (5%) and our payment processor’s fee (~5%) will automatically calculate, revealing an estimated new total incorporating fees and your estimate of taxes. Note that payment processing fees vary depending on the country you select and the number of backers you receive. More detailed information on fees can be found here.
- Click “Set funding goal” to use this new amount as your funding goal.