How Much Does PayPal Take From Each Payment?
PayPal's merchant fees combine a percentage rate with a small fixed fee, and the percentage changes depending on whether the payment is domestic, international, or a Friends & Family transfer. This PayPal fee calculator handles all three cases and can also work backward from a target net amount to tell you exactly what to invoice.
💡 Quick Summary
Domestic payments run about 2.99% + a fixed fee; international payments add roughly 1.5% more, landing near 4.49-4.99% + fixed fee. Friends & Family domestic transfers are typically free.
PayPal Merchant Fee Structure
| Transaction Type | Typical Fee |
|---|---|
| Domestic (same country) | ~2.99% + fixed fee |
| International | ~4.49% + fixed fee (domestic rate + ~1.5%) |
| Friends & Family (domestic) | Free (bank/balance funded) |
| Friends & Family (international) | Fixed fee only, varies by currency |
Why "How Much Should I Invoice?" Matters
If you need to net a specific amount after PayPal's fee — say, exactly $500 to cover a project cost — invoicing for exactly $500 will leave you short, since PayPal deducts its cut from what you receive. The reverse calculation mode grosses up your invoice so the fee comes out of the client's payment, not your intended earnings.
Tips for Freelancers Using PayPal
- Build the fee into your rate or invoice amount rather than absorbing it silently.
- Avoid Friends & Family for business payments — it isn't covered by PayPal's buyer/seller protection and can violate PayPal's terms for commercial transactions.
- Batch smaller payments where possible, since the fixed fee portion hits harder on small transactions.
Fee percentages and fixed fees shown reflect commonly published PayPal merchant rates and can vary by account type, country, and PayPal's own periodic rate changes — confirm your exact rate in your PayPal account before invoicing.