FeeCalc

PayPal Fee CalculatorCalculate Exact PayPal Processing Fees Instantly

Enter your transaction amount to see exactly how much PayPal charges, what you receive after fees, and your true effective fee rate. Covers 10 currencies and regions worldwide.

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How PayPal Merchant Fees Are Calculated

PayPal charges merchants using the same two-component model as most processors: a percentage of the payment plus a fixed per-transaction fee. In the US, the standard rate is 3.49% + $0.49.

This means a $100 payment costs $3.98 in fees and you receive $96.02. The fixed $0.49 component makes small transactions proportionally more expensive: a $10 payment carries an effective rate of 8.4%.

Quick takeawayPayPal's fixed fee ($0.49) is 63% higher than Stripe's ($0.30). This gap is especially costly for businesses processing many small transactions — at 5,000 transactions per month, that $0.19 difference alone costs $950/month.

PayPal Fee Tiers and Discount Programs

Unlike Stripe, which uses flat pricing until custom negotiation, PayPal offers several distinct pricing tiers:

  • Standard commercial (3.49% + $0.49): The default rate for all US merchants with no volume commitment
  • Merchant rate discounts: Available for businesses processing over $10,000/month, with rates dropping in tiers down to approximately 1.98% + $0.49
  • Micropayments (4.99% + $0.09): A special rate with a higher percentage but much lower fixed fee, optimized for transactions under $12
  • PayPal Payments Pro ($30/month): Adds a hosted checkout page and virtual terminal while keeping the same per-transaction rates
TipIf your average transaction is under $12, apply for PayPal's micropayment rate. On a $5 transaction, the micropayment rate costs $0.34 versus $0.66 on the standard rate — a 48% fee reduction.

PayPal's Hidden Costs: What Merchants Often Miss

The headline rate is only part of the picture. Several additional PayPal fees can significantly increase your total processing cost:

  • Chargebacks: $20 per dispute, and unlike Stripe's $15 fee, PayPal's chargeback fee is non-refundable even if you win
  • Currency conversion: PayPal applies a 3–4% spread above the mid-market exchange rate — significantly worse than Stripe's flat 1% conversion fee
  • Cross-border transactions: An additional 0.5–2% fee for receiving payments from other countries
  • Instant transfers: 1.75% (max $25) to move funds to your bank account immediately
Common mistakePayPal's currency conversion spread is one of the most expensive in the industry. If you receive international payments, consider having customers pay in your local currency or using a separate forex service to save 2–3% per transaction.

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Frequently Asked Questions

How do I calculate the PayPal fee on a payment I receive?

Multiply the transaction amount by PayPal's percentage rate (3.49% in the US), then add the fixed fee ($0.49). For a $75 payment: $75 x 0.0349 + $0.49 = $3.11. Enter any amount in our calculator to see the result instantly.

Why are PayPal fees higher than Stripe in the US?

PayPal charges 3.49% + $0.49 versus Stripe's 2.9% + $0.30 for US domestic transactions. PayPal's higher rate reflects its consumer-facing brand, buyer protection program, and built-in checkout experience — features that can increase conversion rates.

Does PayPal offer lower rates for high volume?

Yes. PayPal offers discounted merchant rates starting at $10,000/month in volume. Rates can drop to as low as 1.98% + $0.49 for qualifying merchants. Contact PayPal's merchant services team to negotiate.

What is PayPal's micropayment rate?

PayPal offers a micropayment rate of 4.99% + $0.09 per transaction. Despite the higher percentage, the much lower fixed fee ($0.09 vs $0.49) makes this rate cheaper for transactions under approximately $12. You must apply for micropayment pricing — it's not automatic.

Does PayPal refund fees when I issue a refund?

Partially. PayPal returns the percentage-based portion of the fee on refunds but keeps the fixed fee ($0.49 in the US). This is slightly better than Stripe, which retains the entire processing fee on refunds.

How much does PayPal take from a $100 payment?

On a $100 US transaction, PayPal charges $3.98 in fees (3.49% + $0.49). You receive $96.02. The effective fee rate is 3.98%.

Are PayPal fees different for goods vs services?

For business/merchant accounts, PayPal charges the same commercial rate (3.49% + $0.49 in the US) regardless of whether you sell physical goods, digital products, or services. Personal (friends & family) transfers have different fee structures.

Does PayPal charge for receiving money from other countries?

Yes. PayPal adds a cross-border fee of 1.5% (ranging from 0.5% to 2% depending on the country) for international transactions. Currency conversion adds another 3–4% spread above the mid-market rate. These fees are on top of the standard transaction rate.

Can I avoid PayPal fees entirely?

No, if you're receiving commercial payments through PayPal, fees always apply. However, you can reduce costs by qualifying for volume discounts, using micropayment pricing for small transactions, and avoiding currency conversion by collecting payments in your local currency.

Assumptions & methodology
  • All rates shown are standard published domestic card rates for online payments.
  • International card surcharges (+1–2%) and currency conversion fees are not included.
  • Actual fees may differ based on negotiated volume discounts, business type, or plan.
  • We are not affiliated with Stripe, PayPal, or any payment processor.
  • Always verify current rates on the official Stripe and PayPal pricing pages.

Last updated: February 15, 2026