About PayPal fees
PayPal does not move money for free. When you receive a payment for goods or services, PayPal deducts a transaction fee made of two parts: a percentage of the amount and a small fixed charge per transaction. This calculator turns any payment amount and transaction type into the exact fee, the amount you will actually receive, and the effective rate, so you can price your products or split a bill without surprises.
The rate depends on the type of payment. The standard US goods-and-services rate in 2026 is 2.99 percent plus 0.49 dollars. Micropayments, designed for very small sales, use 4.99 percent plus a lower 0.09 dollar fixed fee. PayPal invoicing is 3.49 percent plus 0.49 dollars. International payments add a cross-border surcharge and, when currencies are converted, an exchange-rate markup. Friends-and-family transfers within the US are free when funded from a balance or bank account, because no commercial service is involved.
Sellers, freelancers, and anyone splitting costs use a fee calculator to set prices that net a target amount, to compare PayPal against other processors, and to understand why a small payment loses a surprisingly large share to the fixed fee.
How the fee math works
Every PayPal fee follows the same two-part structure:
Fee = Amount x Percentage rate + Fixed fee You receive = Amount - Fee Effective % = Fee / Amount x 100
- Percentage rate scales with the payment: 2.99 percent for standard US, higher for micropayments, invoicing, and international.
- Fixed fee is charged once per transaction (0.49 dollars standard), which dominates on small payments.
- Effective rate falls as the amount rises, because the fixed fee is spread across more dollars.
Worked example
You receive a 100 dollar payment for goods at the standard US rate of 2.99 percent plus 0.49 dollars.
- Percentage part: 100 x 2.99 percent = 2.99 dollars.
- Add the fixed fee: 2.99 + 0.49 = 3.48 dollars total fee.
- You receive: 100 - 3.48 = 96.52 dollars.
- Effective rate: 3.48 / 100 = 3.48 percent.
- To net 100 dollars instead, charge about 103.60, since the fee is taken from the larger total.
Standard US fee by payment size
Goods-and-services payments at 2.99 percent plus 0.49 dollars, showing how the effective rate drops as the amount grows.
| Amount | 2.99% part | + fixed | Total fee | You receive | Effective rate |
|---|---|---|---|---|---|
| $10 | $0.30 | $0.49 | $0.79 | $9.21 | 7.9% |
| $25 | $0.75 | $0.49 | $1.24 | $23.76 | 5.0% |
| $50 | $1.50 | $0.49 | $1.99 | $48.01 | 4.0% |
| $100 | $2.99 | $0.49 | $3.48 | $96.52 | 3.5% |
| $500 | $14.95 | $0.49 | $15.44 | $484.56 | 3.1% |
Common pitfalls
- Adding the fee on top and still coming up short. Adding 3.48 to a 100 dollar target is not enough; PayPal takes its percentage of the higher total, so you must gross up the price.
- Using friends and family for sales. It removes buyer protection and violates PayPal policy for commercial payments, risking account limits.
- Ignoring the fixed fee on small items. The 0.49 dollar charge can be a tenth of a tiny sale; bundle small items or use the micropayment rate where eligible.
- Forgetting international markup. Cross-border payments add a surcharge plus a currency-conversion spread, well above the domestic 2.99 percent.
- Assuming refunds return the fee. When you refund a payment, PayPal returns the percentage portion but policies on the fixed fee vary, so a refunded sale is rarely fully cost-free.
Frequently asked questions
What is PayPal's standard fee in 2026?
For standard goods-and-services payments received within the US, PayPal charges 2.99 percent of the amount plus a fixed 0.49 dollars per transaction. So on a 100 dollar payment the fee is 2.99 plus 0.49, which is 3.48 dollars, and you receive 96.52 dollars. Other transaction types use different rates: micropayments are 4.99 percent plus 0.09 dollars, invoicing is 3.49 percent plus 0.49 dollars, and international payments add a cross-border surcharge plus a currency conversion spread.
How do I calculate the PayPal fee on a payment?
Multiply the payment amount by the percentage rate, then add the fixed per-transaction fee. With the standard US rate that is amount x 0.0299 plus 0.49 dollars. The amount you actually receive is the payment minus that fee. The fixed component means small payments lose a larger share to fees: on a 5 dollar sale the 0.49 fixed fee alone is almost 10 percent before the percentage is even added.
Is PayPal free for friends and family?
Sending money to friends and family within the United States is free when the payment is funded by your PayPal balance or a linked bank account. If you fund a friends-and-family payment with a credit or debit card, PayPal charges a percentage fee. International friends-and-family transfers also carry a fee plus currency conversion. Friends and family should never be used to pay for goods, because it removes PayPal's purchase protection for the buyer.
Who pays the PayPal fee, the sender or the receiver?
For goods-and-services payments the receiver pays the fee, which PayPal deducts from the amount before it lands in the account. The sender pays the full sticker amount. This is why sellers often build the expected fee into their price: to net a target amount you must charge slightly more, because adding the fee on top still leaves you short once PayPal takes its percentage of the higher total.
How much extra does PayPal charge for international payments?
International goods-and-services payments use a higher percentage rate (around 4.4 percent plus a fixed fee in many corridors) and, when a currency is converted, PayPal applies an exchange-rate markup of roughly 3 to 4 percent above the base rate. Together these can push the effective cost well above the domestic 2.99 percent. The exact surcharge depends on the sender and receiver countries, so check PayPal's cross-border fee schedule for your specific route.