The US rate, and how the fee is built
A standard US goods-and-services payment loses about 2.9% plus a flat 30 cents. The percentage scales with the sale; the 30 cents is charged once no matter the size, which is what makes small payments hurt. On $100 the fee is $3.20 and you receive $96.80.
What you actually receive
| You’re paid | Fee (2.9% + $0.30) | You receive | Effective rate |
|---|---|---|---|
| $5 | $0.45 | $4.55 | 8.9% |
| $20 | $0.88 | $19.12 | 4.4% |
| $50 | $1.75 | $48.25 | 3.5% |
| $100 | $3.20 | $96.80 | 3.2% |
| $500 | $14.80 | $485.20 | 3.0% |
| $1,000 | $29.30 | $970.70 | 2.9% |
The effective rate falls toward 2.9% as the amount grows, because the fixed 30 cents becomes a smaller share of the total.
Gross-up: charge so you keep the exact amount
Adding 2.9% to your target under-collects, because the fee also applies to the extra you add. Divide by what is left after the rate instead.
- Want $100 net → (100 + 0.30) ÷ 0.971 = $103.30. PayPal takes $3.30, leaving you $100.00.
- Want $50 net → (50 + 0.30) ÷ 0.971 = $51.80.
Where the rate is different
- International payments. A cross-border sale adds a fixed international fee on top of the base rate, and a currency conversion adds roughly 3% above the market rate. A foreign sale can cost 5% or more all in.
- Micropayments. If your account is on the micropayment plan, the fixed fee drops but the percentage rises, which is cheaper only on very small sales.
- Refunds. When you refund a buyer, PayPal returns the percentage fee but no longer the fixed portion on older transactions, so check your account’s current terms.
- Disputes. A chargeback or dispute you lose carries its own fee, separate from the processing fee, and you can lose the goods too.
PayPal changes its published rates from time to time. Confirm the exact percentage in your own account before pricing.
Common questions
What percentage does PayPal take?
For US goods and services the standard rate is about 2.9% of the payment plus a fixed 0.30 dollars per transaction. Rates differ for international payments, micropayments and QR-code sales, and your account may be on a different plan.
How do I work out what to charge so I receive an exact amount?
Do not just add the fee percentage to your target. Take the amount you want to keep, add the fixed fee, then divide by 1 minus the rate. For 100 dollars net at 2.9% plus 0.30: (100 + 0.30) divided by 0.971 is about 103.30 dollars.
Does the fixed 30-cent fee matter on small payments?
A lot. On a 5 dollar sale the 0.30 fixed fee alone is 6% before the percentage rate is added, so the total bite is close to 9%. The fixed fee is why tiny transactions are proportionally expensive.
Are Friends and Family payments free?
Sending money to friends and family from a linked bank or PayPal balance is free in the US, but those payments have no seller protection. Using them for a sale to dodge fees is against PayPal policy and leaves you exposed.
