PayPal fee calculator

On a $100 sale at PayPal’s US goods and services rate of 2.99% + $0.49, the fee is $3.48 and you receive $96.52, an effective rate of 3.48%. If the buyer pays through PayPal Checkout on your website, the rate is 3.49% + $0.49, so the fee on $100 rises to $3.98 and you receive $96.02. Add 1.5% if the buyer is outside the US, and around 3% more if PayPal converts the currency. Enter your own amount in the calculator above to see the exact breakdown for any fee type.

You cannot remove PayPal’s fee on commercial payments, but you can lower it. In the US, QR code payments are charged 2.29% + $0.09 instead of 2.99% + $0.49, and registered charities pay 1.99% + $0.49. Avoid the international (+1.5%) and currency conversion (around 3%) surcharges by billing in the buyer’s currency where you can. You can also gross up your prices so the fee is built in: use the reverse mode in the calculator above to see what to charge. Finally, compare processors, since base card rates differ between PayPal, Stripe, and Square.

On a $1,000 sale at the US goods and services rate of 2.99% + $0.49, the PayPal fee is $30.39 ($29.90 percentage fee plus the $0.49 fixed fee), so you receive $969.61. That is an effective rate of 3.04%, lower than on small sales because the $0.49 fixed fee is a smaller share of a bigger amount. Through PayPal Checkout at 3.49% + $0.49 the fee is $35.39 and you receive $964.61. International and currency conversion surcharges come on top if they apply.

Roughly, yes. PayPal’s headline US rate for goods and services is 2.99% + $0.49 per transaction, which works out to an effective 3.48% on a $100 sale once the fixed fee is included. Other fee types are higher: PayPal Checkout and invoicing are 3.49% + $0.49, and micropayments are 4.99% + $0.09. In the UK the standard commercial rate is 2.9% + £0.30. So “3%” is a reasonable mental shortcut for mid-sized US sales, but your real rate depends on the fee type, the sale amount, and any international or currency conversion surcharges.

Friends and family is for personal transfers, like splitting a bill or sending a gift. It is free for the sender when funded by a PayPal balance or linked bank account, but it carries no buyer protection and PayPal’s terms prohibit using it for commercial sales. Goods and services is the commercial option: the seller pays 2.99% + $0.49 in the US, and the buyer gets purchase protection. If you accept friends and family payments for business, you risk account limitation, and your customers have no recourse if something goes wrong. For anything you sell, use goods and services and price the fee in.

The seller pays. On a goods and services payment, the buyer pays the full price and PayPal deducts its fee before the money lands in your PayPal balance. So if a customer pays you $100 at the US rate of 2.99% + $0.49, they are charged $100 and you receive $96.52. PayPal’s rules do not allow adding a separate surcharge for paying with PayPal in most regions, but you can build the fee into your prices. Use the reverse mode in the calculator above to work out the price that leaves you with the amount you actually want to keep.

Gross up the amount: add the fixed fee, then divide by one minus the percentage rate. At the US goods and services rate of 2.99% + $0.49 the formula is (target + $0.49) divided by 0.9701. To receive exactly $1,000, you would invoice $1,031.33; to receive $100, you would invoice $103.59. Note that PayPal invoicing is charged at 3.49% + $0.49, so the gross-up is bigger on invoices than on standard goods and services payments. The reverse mode in the calculator above does this math for every fee type: switch to “Work out what to charge” and enter the amount you want to receive.

Generally, yes. PayPal fees are a cost of doing business, so US sellers can usually deduct them as a business expense (for example on Schedule C for sole proprietors), and UK sellers can typically treat them as an allowable expense against business profits. Keep records: PayPal’s monthly statements and activity reports show fees per transaction, and this calculator’s monthly volume mode gives you a quick estimate of your annual fee cost. Deductibility depends on your situation, so confirm the details with your accountant or tax adviser. This is general information, not tax advice.