Want your own numbers? The PayPal calculator shows every fee and your profit as you type.
Open the PayPal US fee calculatorPayPal invoicing is free to send, and you only pay when a customer pays you. For freelancers and service businesses the fee can still add up to thousands of dollars a year. Here is how it works, with every amount checkable in the PayPal fee calculator.
The invoice fee
A paid PayPal invoice costs 3.49% + $0.49 in the US, the same as a standard goods and services payment. International clients add 1.5%.
| Payment | Total fees | Payout | Fees % |
|---|---|---|---|
| $100.00 | $3.98 | $96.02 | 3.98% |
| $250.00 | $9.22 | $240.79 | 3.69% |
| $500.00 | $17.94 | $482.06 | 3.59% |
| $1,000.00 | $35.39 | $964.61 | 3.54% |
| $2,500.00 | $87.74 | $2,412.26 | 3.51% |
| $5,000.00 | $174.99 | $4,825.01 | 3.50% |
A $2,500 invoice costs $87.74 to collect. Over a year of monthly invoices that is more than $1,000.
Invoice so you receive the full amount
If your rate is $1,000 and you want $1,000 in your account, you need to invoice $1,036.68. Use the take-home field in the calculator to get the exact figure for any amount. Many freelancers set their quoted rates with the fee already included instead of adding a line item.
Recording fees for taxes
PayPal fees are a business expense. Record the gross invoice as income and the fee as an expense, which matches how PayPal reports payments on Form 1099-K. Keep your PayPal activity download for your records. This is general information, not tax advice, so check your situation with a tax professional.
Cheaper ways to invoice
- ACH bank transfer through Stripe costs 0.8% capped at $5, which is dramatically cheaper for large invoices. See Stripe ACH vs card fees.
- Square invoices paid by ACH cost 1% with a $1 minimum. See Square invoice fees.
- Direct bank transfer is free for many business accounts.
Offering a bank option alongside PayPal lets clients choose, and many businesses prefer paying by transfer for larger amounts anyway.
Frequently asked questions
Does PayPal charge to send an invoice?
No. Sending an invoice is free. The fee is charged only when the customer pays.
What is the PayPal fee on a $1,000 invoice?
A $1,000 US invoice costs $35.39 in fees (3.49% plus $0.49), so you receive $964.61.
Run your next sale through the calculator before you commit.
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