How to use it
- Choose the payment type that matches the transaction, for example a checkout payment from your store, a card payment processed through PayPal, or a goods and services payment sent directly.
- Enter the amount the buyer will pay, in your account currency.
- Toggle international if the buyer is in a different country from you.
- Read the PayPal fee and amount received.
- To price an invoice, switch to how much to charge and enter the amount you need to receive.
How PayPal fees are calculated
Percentage plus fixed fee
Most commercial PayPal transactions are charged a percentage of the payment plus a fixed fee per transaction. The fixed fee varies by the currency received. Like any per-transaction fee, it weighs more heavily on small payments.
Payment type matters
PayPal prices its products differently. A standard PayPal Checkout payment, a card processed through PayPal's advanced card fields, an invoice, a QR code payment and a goods and services transfer may each carry a different rate. That is why the calculator asks for the payment type first. Picking the wrong one is the most common cause of a result that does not match your statement.
International surcharge
When the buyer is outside your country, PayPal adds an international commercial transaction percentage on top of the base fee. If you also receive money in a currency you then convert, a separate currency conversion spread applies. That conversion cost does not appear as a line-item fee, so it is easy to miss.
Why the reverse calculation is not simple addition
If you need to receive a set amount, you cannot just add the fee to it, because PayPal charges its percentage on the higher total too. The correct formula divides the target amount (plus the fixed fee) by one minus the percentage rate. The calculator does this for you, so the number it suggests nets your target exactly instead of leaving you slightly short.
Worked examples
- Invoice pricing. You quote a client a project fee and want that full amount in your account. Use the reverse mode, enter the quote, and invoice the figure it returns, or state on the invoice that processing fees are included.
- Domestic vs. international. Enter a typical order, then toggle international on. The difference is what cross-border buyers cost you per order. Multiply by your monthly international order count to see whether it is worth offering a local alternative.
Common mistakes
- Using the wrong payment type, especially confusing a store checkout payment with a direct goods and services transfer.
- Forgetting currency conversion, which is charged through the exchange rate rather than as a visible fee.
- Assuming refunds return the fee. PayPal generally does not return the fixed portion of the fee when you refund. Check your current terms.
- Ignoring fees in ad math. Payment fees reduce margin. Use your net received amount in the profit margin calculator before setting a Google Ads ROAS target.
Tips to lower PayPal costs
- Hold balances in the currencies you sell in to avoid repeated conversion.
- Offer PayPal alongside a card processor and compare effective rates with the Stripe fee calculator.
- If you sell on Shopify through PayPal, remember that a third-party gateway can trigger an extra platform fee. Check it with the Shopify fee calculator.
- If your monthly volume is high, ask PayPal about merchant rate options for your account.