PayPal Fee Calculator

PayPal's US domestic Goods and Services rate sits at 2.99% + $0.49 in 2026, up from the long-running 2.9% + $0.30 legacy rate.

• Invoicing is priced higher at 3.49% + $0.49 because PayPal provides additional services — automated reminders, payment tracking, and dispute mediation.
• Micropayments (opt-in) flip the formula to 4.99% + $0.09, which makes any payment below roughly $12 cheaper because the fixed fee drops by 40 cents.
• In-person QR Code payments are the cheapest channel at 2.29% + $0.09, reflecting PayPal's push into point-of-sale.
• Cross-border transactions carry a flat 1.5% surcharge on top of the base rate, and currency conversion adds a further 3-4% spread when the payment arrives in a different currency than your account.

If a client owes you $500 and you send them a PayPal invoice for $500, PayPal takes 3.49% + $0.49 = $17.94 and you receive $482.06.

To receive the full $500, you must gross up the invoice: Gross = (500 + 0.49) / (1 − 0.0349) = $518.59.

Always bake the fee into the price you quote — never absorb it silently. Our PayPal fee calculator does the reverse math automatically so you can generate a correct invoice in one step.

PayPal's standard fee for goods-and-services payments is commonly around 2.9% of the amount plus a fixed per-transaction fee (about $0.30 in the US) — always confirm current rates on PayPal's fee page, as they change.

On a $100 payment that's roughly $3.20 in fees, leaving about $96.80 net.

This calculator applies the current percentage and fixed fee to show exactly what you'll receive, and works in reverse to find what to charge.

PayPal charges different fees by transaction type:

• domestic goods-and-services (the standard percentage plus fixed fee)
• international payments (a higher percentage)
• currency conversion (a spread added to the exchange rate)
• micropayments (a separate structure for small amounts)

Friends-and-family transfers funded by balance or bank are typically free domestically.

Knowing which fee applies — per PayPal's published schedule — prevents surprises when money arrives smaller than expected.

To actually receive a target amount after fees, you 'gross up' the charge: Amount to Charge = (Target + Fixed Fee) ÷ (1 − Percentage).

To net $100 at 2.9% + $0.30, charge about $103.30.

Simply adding the fee percentage to the invoice under-collects, because the fee also applies to the added amount. Freelancers who bill the exact gross-up recover the full fee; this calculator computes it so you're not left short.

PayPal distinguishes 'Friends & Family' (personal transfers, usually free when funded by balance/bank, but no buyer/seller protection) from 'Goods & Services' (commercial payments that carry the fee but include purchase protection).

Using Friends & Family for a business sale to dodge fees violates PayPal's terms and forfeits protection for both parties.

Choose Goods & Services for any real transaction, and price the fee into what you charge.

Cross-border PayPal payments cost more: a higher percentage fee plus, if currencies differ, a currency-conversion charge added as a margin over the market exchange rate.

For freelancers with overseas clients these stack up. Per PayPal's schedule, receiving in a foreign currency and converting can cost several percent total.

Some sellers hold balances in the payment currency or use a multi-currency account to reduce conversion costs.

PayPal is widely used by freelancers for its familiarity and invoicing tools, but the per-transaction fee eats into margins on every payment.

Best practices include:

• gross-up billing to recover fees
• using invoices with clear terms
• comparing PayPal's cost against alternatives for your volume

For high volumes, negotiated or alternative processors may be cheaper. Track fees as a deductible business expense, as the IRS allows.

Ways to cut PayPal costs include:

• using the gross-up to pass fees to the payer where appropriate
• choosing bank-funded transfers to avoid card fees on personal payments
• minimizing currency conversions
• applying for lower merchant rates at higher volumes
• comparing processors

Avoid the terms-violating tactic of misusing Friends & Family for business.

The most reliable savings come from pricing fees into your rates and reducing international conversion costs.

PayPal's standard rate is broadly similar to Stripe and Square (around 2.9% + a fixed fee for online card payments), but they differ in features, payout speed, international support, and integration.

• PayPal offers unmatched consumer recognition and buyer protection
• Stripe suits developers and subscriptions
• Square suits in-person sales

Compare total cost and fit for your business rather than headline rate alone, since effective cost depends on your transaction mix.

Frequent mistakes include:

• forgetting the fixed per-transaction fee
• adding only the percentage (not grossing up) and under-collecting
• misusing Friends & Family for business (against terms)
• ignoring currency-conversion costs on international payments
• not tracking fees as deductible expenses

Confirm current rates, gross up to net your target, use Goods & Services for sales, minimize conversions, and log fees for tax time.