How to Calculate PayPal Fees (2024)

FAQs

How to Calculate PayPal Fees? ›

How do I calculate PayPal fees? Example 1: You send an invoice to a client for $500 to be paid via PayPal Checkout or Guest Checkout. The fees for receiving money via PayPal Checkout/Guest Checkout are 3.49% of the total amount plus a fixed fee of $0.49, which comes out to $17.94.

You may wonder how much are paypal fees. PayPal has a set 3.49% processing fee in place as well as a $0.49 per transaction on top. It means the more you transfer, the more you will pay out in processing fees. No matter how much you decide to send, this fee remains.

For example, if you are receiving a domestic invoice payment of $1,000, the PayPal fee would be ($1,000 x (3.49 ÷ 100)) + $0.49, or $35.39. Continuing with the previous example, if you want to receive a total amount of $1,000, you should charge ($1,000 + $0.49) ÷ (1 - (3.49 ÷ 100)), or $1,036.67.

As we said before, the standard rate for each transaction made using PayPal is 2.9% plus 30 cents. This may seem hefty enough as is. However, if your business experiences significant growth and processes a staggering number of transactions regularly, it may come to feel even more burdensome.

A common way to negate PayPal fees is by passing them on to your customer or client, but this can get tricky in terms of ethics and legality. Per PayPal's user agreement, you agree to not surcharge your clients for transaction fees.

The PayPal transaction fee is waived if you send money from your online PayPal account, a linked bank account, or from the PayPal Cash app.

If you're using PayPal Friends and Family to send money within the US, you should have fees only when you pay with your card (or if you send in different currencies)¹: Paying with PayPal balance or a bank account: no fee. With Card: 2.9% + fixed fee. With Amex Send Account: no fee.

To stay in business, the company needs to make some form of income off of its services. To do this, PayPal charges a fee for most transactions that go through its system. And in most cases, these fees are charged to the person or company receiving the money.

If the amount you're sending is up to $3000, you will be charged with 4.4% of the amount plus a fixed fee. The percentage level decreases as the transaction amount goes above $3000.

How to receive money on PayPal without fees? ›

If the payment method is a PayPal balance, bank account, or Amex Send Account, there is no fee; if the payment method is another card, the fee will be 2.90% + a fixed fee.

If you're transferring your funds from your PayPal account to your bank account in the US or UK, the transaction is free. The money usually takes two to three business days to appear in your bank account. However, if you live in a different country, you may have to pay an additional PayPal fee.

Create your PayPal link. It's free! No monthly commissions or service fees. You will only pay a commission each time you receive a payment from a customer.

If you're making a commercial transaction or an online purchase from an unfamiliar seller, using PayPal Goods and Services is recommended. For transferring money to friends and family, PayPal Friends and Family is preferred.

What a deal. If your transaction requires a currency conversion, we will use a retail exchange rate (the wholesale cost of foreign currency as denominated by an outside financial institution) plus a conversion service charge of 4.5%.

Standard rate for receiving domestic transactions with PayPal. Here are the PayPal fees for domestic transactions: 2.9% of the transaction value if the recipient is based in the UK.

PayPal fees are typically paid by the seller or the recipient of the payment, depending on the type of transaction. However, if a consumer is sending money internationally or using a currency other than their primary currency, PayPal may charge a small currency conversion fee.