How PayPal fees are calculated
For seller payments, PayPal charges a percentage of the payment plus a fixed fee. The fixed fee depends on the currency you receive. If the buyer is in another country, an extra international percentage is added. If PayPal converts the money into another currency, it adds a conversion spread on top.
You receive = Amount − Fee − Conversion spread (if any)
PayPal rounds the fee to the nearest cent. The calculator above uses the rates on PayPal’s own merchant fee pages, checked on 22 October 2026. The date and source link are under the calculator.
Main seller rates (checked 22 October 2026)
| Account country | Standard commercial rate | Fixed fee (home currency) | International extra |
|---|---|---|---|
| United States | 3.49% (Checkout) / 2.99% (goods and services) | $0.49 | +1.50% |
| United Kingdom | 2.9% | £0.30 | +1.29% EEA, +1.99% other |
| Germany | 2.99% (Checkout) / 2.49% (goods and services) | €0.39 | +1.29% UK, +1.99% other |
| Canada | 2.90% | C$0.30 | +0.80% US, +1.00% other |
| Australia | 2.90% | A$0.30 | +1.00% |
| India | 4.40% (international only) | $0.30 / ₹3 | included |
PayPal’s US page lists the goods-and-services row at 2.99% with no fixed fee. All the other US commercial rows add the fixed fee. Card rates, Pay Later and micropayments have their own rows, which you can pick in the Payment type list.
Worked example 1: a US sale
A US seller receives a $250 PayPal Checkout payment from a buyer in the US.
- Percentage fee: $250 × 3.49% = $8.725
- Fixed fee: $0.49
- Total fee: $9.215, rounded to $9.22
- You receive: $240.78
If the buyer were in Canada, the rate would be 3.49% + 1.50% = 4.99%. The fee would be $12.475 + $0.49 = $12.97, and you would receive $237.03.
Worked example 2: what to charge
A UK freelancer wants £500 to land in their PayPal balance from a client in the US. The rate is 2.9% + 1.99% international = 4.89%, plus a 30p fixed fee.
(£500 + £0.30) ÷ (1 − 0.0489) = £526.02. The fee on £526.02 is £26.02, which leaves exactly £500. Switch the calculator to What to charge to get this instantly, including rounding.
Worked example 3: currency conversion
A US seller receives €100 from a buyer in Germany and converts it to dollars. The fee is 3.49% + 1.50% + €0.39 = €5.38, leaving €94.62. PayPal’s conversion spread of 3% costs another €2.84, so the seller keeps the dollar value of about €91.78. That is an 8.2% total cost. Holding the euros, or withdrawing them to a euro account, avoids the spread.
Ways to pay less
- Use the right payment type. In some countries, card payments through Advanced Credit and Debit Card processing cost less than PayPal Checkout. In the UK the gap is 1.2% vs 2.9%.
- Avoid unnecessary conversions. The 3% spread often costs more than the international fee. Ask to be paid in the currency you will spend, or hold a balance in that currency.
- Bundle small payments. The fixed fee hurts on small amounts: $0.49 is 9.8% of a $5 payment. Micropayment rates exist for very small sales but must be enabled on your account.
- Compare processors. Stripe’s US card rate is 2.9% + 30¢, which is cheaper than PayPal Checkout for many card buyers.
- Know your real margin. Add the fee to your cost per order in the profit margin calculator.
Things this calculator does not include
- Personal payments to friends and family. The sender pays these fees, and they come from a separate table.
- Custom or negotiated rates. Large merchants and nonprofits can get lower rates. Your account’s own fee page always wins.
- Chargebacks and disputes, which have their own fees.
- Withdrawal or bank fees. These are usually free to a local bank in most countries, but not in all of them.
If you are a freelancer paid through PayPal, the freelancer take-home calculator follows the money from the platform fee to your local bank. To bill the client, create a PDF with the invoice generator.