How to use the payment processing fee calculator (paypal, stripe)
- Choose whether you want the fee on a sale or the price to charge so you receive an exact amount.
- Enter the amount, your percentage fee and your fixed fee per payment. Use the numbers from your own account or contract. The presets are examples.
- Optionally add an extra percentage, for example for international cards or currency conversion, and the number of such payments you take each month.
- Read the fee, what you receive, the effective fee rate and the monthly and yearly cost.
Formula
Fee = sale x (percentage + extra percentage) + fixed fee
You receive = sale - fee
Price to charge = (amount wanted + fixed fee) / (1 - percentage rate)
Effective rate = fee / sale
Fees are rounded to the cent. When working backward, the price is rounded up to the cent so that you receive at least the amount you want.
Worked example
At 2.9% plus $0.30, a $100 sale costs 2.9 + 0.30 = $3.20 in fees, and you receive $96.80. The effective rate is 3.2%. Fifty such sales a month cost $160.00 in fees.
To receive exactly $100.00, charge (100 + 0.30) / (1 - 0.029) = 103.2956, rounded up to $103.30. The fee on that is $3.30, which leaves $100.00. Adding a 1 percent extra fee for international cards makes the fee on a $100 sale $4.20.
Why small sales cost a higher percent
A fixed fee has a bigger effect on small payments. A 30 cent fee is 3 percent of a $10 sale but only 0.3 percent of a $100 sale, so a small payment can have an effective rate well above the headline percentage. If you sell many small items, consider setting a minimum order or comparing providers with lower fixed fees.
Passing fees on to customers
Some sellers raise prices to cover fees, and some add a surcharge. Rules about surcharges differ by card network, state and provider, so check what applies to you before adding one. When you do raise a price to net an amount, remember that the fee also applies to the part you add, which is why the formula divides by one minus the rate. See your wider margins in the profit margin calculator and the markup calculator.
Check your own rates
Rates and fee structures differ by provider, by country, by payment method and by plan, and they change. Disputes, refunds, currency conversion and instant payouts may carry other fees. Use the numbers on your own pricing page or contract. For taxes charged on sales see the sales tax calculator.
Assumptions and limits
- The presets are example rates only and are not a statement of any provider's current pricing. Enter the figures from your own account.
- One percentage and one fixed fee are applied to each payment, plus the optional extra percentage.
- Refund fees, chargeback fees, monthly plan fees and payout fees are not included.
- Sales tax is not part of the calculation. Enter the amount that the fee is charged on.
Frequently asked questions
How do I calculate a PayPal or Stripe fee?
Multiply the sale by the percentage, add the fixed fee, and subtract the total from the sale. Enter the rates from your own account, since they differ by plan and change over time.
How much should I charge to receive an exact amount?
Add the fixed fee to the amount you want, then divide by one minus the percentage as a decimal. This tool does it and rounds up to the cent.
Why is my effective rate higher than the listed percentage?
The fixed fee adds to it, and it is a bigger share of small payments. Extra percentages for international cards add more.
Are processing fees tax deductible?
They are often a business expense, but tax rules differ. Ask a tax professional about your case.