PayPal Fee Calculator
Calculate exactly what PayPal takes — and how much to charge so you receive the full amount.
You Receive
Fee: 3.49% + $0.49
Based on PayPal's published US rates. Fees vary by country and account type — always confirm with PayPal.
PayPal's fee is not a flat percentage — it is a percentage plus a fixed amount, which means it hits small transactions disproportionately hard. This calculator shows exactly what lands in your account, and, more usefully, what to invoice so the amount you need actually arrives.
How PayPal's pricing works
The standard US rate for goods and services is 3.49% plus $0.49. That fixed component is what most people miss. On a $1,000 invoice, the fee is $35.39 — about 3.5%, roughly what you expected. On a $10 payment, the fee is $0.84 — that is 8.4%. The same fee schedule, more than double the effective rate, purely because the fixed 49 cents does not scale down. International payments add roughly 1.5%. Currency conversion adds around 4% on top of that, and PayPal's exchange rate is typically 3–4% worse than the mid-market rate — a cost that never appears as a line item anywhere. Stack all three and an international payment with conversion can cost 9% or more. On a $2,000 invoice, that is $180 you may not have priced in.
The formula
Standard receiving:
Fee = (Amount × Rate%) + Fixed
You receive = Amount − Fee
Gross-up (to receive an exact amount):
Charge = (Desired + Fixed) ÷ (1 − Rate%)
Example: to receive exactly $1,000 at 3.49% + $0.49
Charge = (1000 + 0.49) ÷ 0.9651 = $1,036.16The gross-up formula is the one people get wrong. Adding 3.49% to $1,000 gives $1,034.90 — and you would receive $998.31, not $1,000. The division is necessary because the fee applies to the larger amount.
Paying PayPal less
- 1Never accept many small payments where one large one would do. Ten $50 payments cost $22.35 in fees; one $500 payment costs $17.94. The fixed component is charged ten times instead of once.
- 2Never use Friends & Family for a business transaction. It is fee-free, which is the temptation, but it removes all buyer and seller protection — and it violates PayPal's terms. Accounts get frozen for this, with the money inside.
- 3Bill in your client's currency and convert elsewhere. PayPal's exchange rate is typically 3–4% worse than mid-market, on top of the stated conversion fee. Wise or a multi-currency account will beat it substantially.
- 4Micropayment pricing exists for a reason. If your typical transaction is under about $10, PayPal's micropayment rate of 4.99% + $0.09 works out cheaper. You must request it on your account — it is not automatic.
- 5Use the gross-up mode before invoicing, not after. Deciding afterwards that you should have charged more is a conversation with your client you do not want to have.
Frequently asked questions
Why is my fee percentage higher than 3.49%?
The fixed $0.49. On small amounts it dominates. A $5 payment pays $0.66 in fees — 13.2%, not 3.49%. The percentage rate only approximates reality on larger transactions.
How do I make the client cover the fee?
Use the 'What I should charge' mode. It calculates the gross-up correctly. Note that simply adding 3.49% does not work — you would still come up short, because the fee applies to the higher total.
Are these rates right for my country?
These are PayPal's published US rates. Fees vary meaningfully by country — the UK, EU, and Australia all differ. The structure (percentage plus fixed) is consistent everywhere, but check your local fee page for exact numbers.
Is Friends & Family really free?
Free of fees when funded by balance or bank, yes. But it provides zero protection for either party, and using it for commercial transactions breaches PayPal's terms of service. Accounts are regularly limited for this, and the funds are held during review.
What about the currency conversion cost?
This calculator includes PayPal's stated 4% conversion surcharge. What it cannot show is the exchange rate spread — PayPal typically applies a rate 3–4% worse than mid-market on top. The real conversion cost is closer to 7–8%.