PayPal Fee Calculator
Calculate PayPal fees for payments, transfers, and international transactions. See exact costs for business and personal accounts before you send or receive money.
Standard rate for selling goods or services (includes buyer protection)
PayPal - Goods & Services Fee Calculator
PayPal - Goods & Services Fee Structure:
- • Fixed fee: $0.49
- • Percentage fee: 3.49%
- • Minimum fee: $0.49
PayPal is one of the world's most recognized digital payment platforms, serving over 400 million users globally. Since its founding in 1998, PayPal has become synonymous with online payments, offering services for personal transfers, business transactions, and international money transfers. Understanding PayPal fees is crucial whether you're an individual sending money to friends, an online business accepting payments, or someone making international transfers.
PayPal's fee structure varies significantly depending on the type of transaction, funding source, and whether you're sending money domestically or internationally. While PayPal offers convenience and buyer protection, their fees can be higher than alternatives, especially for international transfers where currency conversion fees apply.
Our PayPal fees calculator helps you understand the true cost of your transactions before you send. Whether you're calculating business payment processing fees or personal transfer costs, get accurate estimates to make informed decisions about using PayPal for your payment needs.
How PayPal Fees Are Calculated
PayPal uses different fee structures depending on the transaction type. For business payments, they charge 3.49% + $0.49 per transaction in the US. Personal transfers between friends and family are free when funded by a bank account, but cost 2.9% when funded by credit or debit cards.
PayPal Fee Types:
- Business Payments: 3.49% + $0.49
- Personal (Bank): Free
- Personal (Card): 2.9% fee
- International: Base fee + 2.5-4% conversion
- Instant Transfer: 1.75% (min $0.25)
- No Monthly Fees: Pay per transaction only
International transactions are where PayPal becomes expensive. In addition to the base transaction fee, PayPal adds a currency conversion fee of 2.5-4% above the market exchange rate. This can make international transfers cost 5-7% total, significantly more than specialized money transfer services.
Example Calculation:
Business payment of $500:
- • Payment amount: $500
- • Percentage fee: 3.49% = $17.45
- • Fixed fee: $0.49
- • Total PayPal fee: $17.94
- • Amount received: $482.06
Using the PayPal Fee Calculator
Our PayPal fees calculator simulates PayPal's exact fee structure for different transaction types. Enter your payment amount and see instant calculations for business payments, personal transfers, and international transactions. The calculator helps you understand what you'll pay or receive before committing to a transaction.
Key Features:
- Business and personal fee calculations
- International transfer cost estimates
- Multiple currency support
- Instant fee breakdowns
Perfect For:
- • Online business owners
- • Freelancers receiving payments
- • Personal money transfers
- • International senders
- • E-commerce fee planning
The calculator is especially useful for businesses that need to factor PayPal fees into their pricing strategy. Understanding the exact cost helps you decide whether to absorb fees or pass them to customers, and how PayPal costs compare to other payment processors.
Comparing PayPal with Other Options
PayPal's fees are higher than many alternatives, especially for business payments and international transfers. While PayPal offers excellent buyer protection and global recognition, the convenience comes at a premium. Stripe charges 2.9% + $0.30 compared to PayPal's 3.49% + $0.49 for business payments.
PayPal vs Competitors:
PayPal Advantages:
- • Worldwide brand recognition
- • Strong buyer protection
- • Easy setup and integration
- • No monthly fees
- • Large user base
PayPal Disadvantages:
- • Higher fees than alternatives
- • Expensive international transfers
- • Account holds and limitations
- • Poor customer service reputation
- • Limited seller protection
For international transfers, PayPal is particularly expensive due to poor exchange rates and high conversion fees. Services like Wise, Remitly, or traditional money transfer companies often cost 3-5x less than PayPal for international transfers. However, PayPal remains popular for its convenience and buyer protection features.
Tips to Save on PayPal Fees
For Personal Use:
- • Use bank account funding (free for personal transfers)
- • Avoid credit/debit cards for personal transfers
- • Use standard transfer vs instant (3-5 days vs immediate)
For Business:
- • Consider Stripe or Square for lower fees
- • Factor fees into product pricing
- • Use PayPal invoicing for better rates
International Transfers:
For international money transfers, strongly consider alternatives like Wise, Remitly, or Western Union. PayPal's international fees can be 3-5x higher than specialized money transfer services, potentially saving you hundreds of dollars on larger transfers.
PayPal Pros and Cons: Should You Use It?
Advantages
- ✓Universal Recognition: 400M+ users worldwide means customers trust and already have PayPal accounts
- ✓Buyer Protection: Industry-leading purchase protection encourages customer confidence and higher conversion rates
- ✓Easy Setup: No technical knowledge required—start accepting payments in minutes with simple buttons
- ✓Mobile Friendly: Venmo integration and mobile app make it perfect for peer-to-peer and mobile commerce
- ✓Free Personal Transfers: Send money to friends and family for free when using bank accounts
✗Disadvantages
- ✗Higher Fees: At 3.49% + $0.49, PayPal is more expensive than Stripe (2.9% + $0.30) or Square (2.6% + $0.15)
- ✗Account Freezes: PayPal notoriously freezes accounts without warning, holding funds for 180 days during investigations
- ✗Terrible Exchange Rates: International transfers use rates 3-4% worse than market, making cross-border costly
- ✗Dispute Bias: PayPal often favors buyers in disputes, making sellers vulnerable to fraudulent claims
- ✗Customer Service: Slow response times and difficulty reaching actual humans for support
PayPal vs. Stripe vs. Square: Which Is Cheaper?
PayPal pioneered online payments but isn't always the most cost-effective choice in 2025. Here's how PayPal stacks up against major competitors for a typical $100 transaction:
| Processor | Fee Structure | Fee on $100 | You Receive |
|---|---|---|---|
| PayPal | 3.49% + $0.49 | $3.98 | $96.02 |
| Stripe | 2.9% + $0.30 | $3.20 | $96.80 |
| Square | 2.6% + $0.10 | $2.70 | $97.30 |
| Shopify Payments | 2.9% + $0.30 | $3.20 | $96.80 |
Verdict: PayPal charges 24% more than Stripe and 47% more than Square per transaction. On $10,000 monthly sales, you'd pay $349 to PayPal versus $290 to Stripe—$708 more annually. The convenience and trust of PayPal may justify the premium for some businesses, but most sellers save significantly by offering it as an option alongside cheaper processors.
When to Use PayPal (And When to Avoid It)
PayPal Makes Sense For:
- • eBay sellers (required for many transactions)
- • Small businesses with non-technical owners
- • International marketplaces like Etsy, Fiverr
- • Invoicing clients who prefer familiar payment methods
- • Personal transfers between friends (free!)
- • Buyers who want purchase protection
- • Supplemental option alongside Stripe/Square
- • Crowdfunding and donation campaigns
Avoid PayPal For:
- • International money transfers → Use Wise, Remitly, or Western Union for 50-70% savings
- • High-volume businesses → Traditional merchant accounts offer better rates above $50K/month
- • Primary payment processor → Use Stripe or Square as main processor, PayPal as backup
- • Digital products → PayPal heavily scrutinizes digital goods; Stripe is friendlier
- • Large transactions → The 3.49% fee hurts more as transaction size increases
Pro Tip: Don't rely solely on PayPal. Businesses that offer PayPal as one of several payment options (alongside Stripe, Square, or credit cards) see higher conversion rates while minimizing fees. Never hold more than 30 days of operating capital in PayPal due to freeze risk.
Frequently Asked Questions
How much does PayPal charge for payments?
PayPal charges 3.49% + $0.49 for business payments in the US. Personal transfers between friends and family are free when funded by bank account, but cost 2.9% when funded by credit or debit cards.
Are PayPal personal transfers free?
Yes, personal transfers funded by bank account or PayPal balance are free within the US. However, using a credit card or debit card for personal transfers incurs a 2.9% fee. International personal transfers have additional fees.
What are PayPal international transfer fees?
International PayPal transfers typically cost 5-7% total due to currency conversion fees (2.5-4% above market rate) plus transaction fees. This makes PayPal one of the most expensive options for international money transfers.
Does PayPal charge monthly fees?
PayPal doesn't charge monthly fees for personal or business accounts. You only pay transaction fees when you receive payments, send money internationally, or use instant transfers. There are no account maintenance or setup fees.