PayPal, Stripe & Square Fee Calculator — Calculate Transaction Fees 2026

What are the standard PayPal and Stripe fees in 2026?

For standard domestic (US) transactions, PayPal charges 3.49% + $0.49 per transaction for goods and services payments. Stripe charges 2.9% + $0.30 per transaction for online card payments. Both processors also offer alternative rates for specific scenarios: PayPal has lower rates for micropayments (transactions under $10) and nonprofit organizations, while Stripe offers volume discounts and custom pricing for large businesses. International transactions typically carry an additional 1.5% cross-border fee. Always check the official pricing pages for your specific account type, as rates vary by country, account tier, and payment method.

Source: Stripe — Pricing & Fees

Is it legal to pass payment processing fees to clients?

In the United States, passing credit card or payment processing surcharges to customers is generally permitted, though rules vary by state and by the specific payment network's merchant agreement. PayPal and Stripe's terms of service allow merchants to charge more to cover fees, as long as they do not charge different prices based solely on whether the customer uses PayPal or another method in a discriminatory way. Several US states — including California, Colorado, and Massachusetts — have their own surcharge laws that regulate how and whether merchants can add these fees. Outside the US, EU regulations and local consumer protection laws may prohibit surcharging for certain payment methods. Always review the payment processor's merchant agreement and consult local regulations before adding surcharges to customer invoices.

Source: PayPal — US Merchant Fees

When is Stripe cheaper than PayPal, and vice versa?

For most transaction amounts, Stripe (2.9% + $0.30) is cheaper than PayPal (3.49% + $0.49). The break-even point — where both processors cost exactly the same — is at approximately $35.29. Below $35.29, Stripe is cheaper because its fixed fee ($0.30) is smaller. Above $35.29, Stripe remains cheaper because its percentage rate (2.9%) is lower than PayPal's (3.49%). In practice, Stripe is the lower-cost option for the vast majority of e-commerce and freelance transactions. However, the choice between processors is rarely made on fees alone — PayPal's buyer protection, widespread consumer familiarity, and ability to send invoices directly through the platform often make it the preferred option for B2C sellers and freelancers working with individual clients.

How do I calculate the exact amount to charge so the client pays the fee?

Use the formula: <strong>charge = (amount you want to receive + fixed fee) ÷ (1 − percentage rate)</strong>. For Stripe, if you want to receive $500: charge = ($500 + $0.30) ÷ (1 − 0.029) = $500.30 ÷ 0.971 ≈ $515.24. Stripe then deducts 2.9% of $515.24 ($14.94) plus $0.30 = $15.24 in fees, leaving you with $500.00. You can verify this with this calculator by entering $500 in the "I want to receive" mode. The same formula works for PayPal, just substitute 0.0349 for the percentage rate and $0.49 for the fixed fee. This is sometimes called "fee passthrough" or "grossing up" the invoice amount. If you are a freelancer determining your hourly rate before fees, use the <a href="/tools/freelance-rate-calculator/">Freelance Rate Calculator</a> to find your minimum viable rate. To see how net income grows over time through investing, try the <a href="/tools/compound-interest-calculator/">Compound Interest Calculator</a>.

Do PayPal and Stripe fees apply to refunds?

PayPal and Stripe have different refund fee policies. Stripe no longer returns the processing fee on refunds — if you refund a transaction, you absorb the original transaction fee. For example, if you charged $103.40 and then issued a full refund, Stripe returns $103.40 to the customer but keeps its $3.30 fee, so you are $3.30 out of pocket. PayPal's policy differs: for standard refunds, PayPal returns the variable percentage portion of the fee but retains the fixed fee ($0.49). For a $100 refund on PayPal, you would recover most of the percentage fee but not the $0.49 fixed portion. Always factor potential refunds into your pricing strategy, especially for high-refund businesses like digital products or event tickets.

Source: Stripe Docs — Refunds

How do Square fees compare to PayPal and Stripe in 2026?

Square charges 2.6% + $0.10 for in-person card payments (tap, dip, or swipe) and 2.9% + $0.30 for online payments. For in-person transactions, Square is significantly cheaper than both PayPal (3.49% + $0.49) and Stripe (2.9% + $0.30) thanks to its lower fixed fee. For online transactions, Square and Stripe have identical rates (2.9% + $0.30), making both cheaper than PayPal. Square is especially popular with small brick-and-mortar businesses, pop-up shops, and farmers markets because of its free point-of-sale hardware and low in-person rates. For online-only businesses, Stripe offers more developer flexibility, while PayPal offers wider consumer recognition.

Source: Square — Pricing

How much is the PayPal fee for $1000?

For a $1,000 domestic US transaction using PayPal's standard goods and services rate (3.49% + $0.49), the fee is $35.39. That means you would receive $964.61 after PayPal deducts its fee. If you want to receive exactly $1,000 after fees, you would need to charge approximately $1,036.73 — use the 'I want to receive' mode in this calculator to get the exact amount. For international transactions, PayPal adds an additional 1.5% cross-border fee, bringing the total fee on a $1,000 international payment to approximately $50.39.

How do I calculate Stripe transaction fees?

Stripe's standard US fee is 2.9% + $0.30 per successful card charge. To calculate the fee on any amount, multiply the charge by 0.029 and add $0.30. For example, on a $200 charge: ($200 x 0.029) + $0.30 = $6.10 in fees, leaving you with $193.90. To calculate how much to charge so you receive a specific amount, use the reverse formula: charge = (desired amount + $0.30) / (1 - 0.029). For $200 net: ($200 + $0.30) / 0.971 = $206.39. Stripe then deducts $6.29, leaving you with approximately $200.10. This calculator automates both calculations — just enter your amount and select the mode.

Source: Stripe — Pricing

Is a 3% transaction fee a lot?

A 3% transaction fee is standard for online credit card processing in 2026. PayPal charges 3.49% + $0.49 and Stripe charges 2.9% + $0.30, both of which are in the 3% range. For context, accepting cash costs nothing in processing fees but carries costs for handling, security, and bank deposits. For most businesses, the convenience of accepting cards and the increased sales volume they enable far outweigh the 3% processing cost. The fee matters more for low-margin businesses — if your profit margin is 5%, a 3% fee takes 60% of your profit. High-margin businesses (like digital products or SaaS) absorb the fee easily. You can pass the fee to customers by increasing your prices or adding a surcharge where legally permitted.