How To Calculate PayPal, Stripe and Fiverr Fees (and Price To Receive The Full Amount)
If you get paid through PayPal, Stripe, Fiverr or any other platform, the amount your client sends is not the amount you keep. Fees quietly take a share of every payment, and they add up fast. This guide explains how payment fees work, the exact formulas to calculate them, how to price your work so you receive the full amount you want, and the hidden costs freelancers and online sellers often miss. Fee rates below are common examples, so always confirm current rates on each platform's pricing page.
How Payment Fees Work
Most payment processors charge two things on each transaction: a percentage of the payment and a small fixed fee. Extra charges may apply for international cards, currency conversion and withdrawing to a local bank.
- Fee = Payment amount x Fee % + Fixed fee
- You receive = Payment amount - Fee - Extra fees
Example: A $500 Project On Different Platforms
| Platform (example rates) | Fee | You receive |
|---|---|---|
| Stripe 2.9% + $0.30 | $14.80 | $485.20 |
| PayPal 3.49% + $0.49 (domestic) | $17.94 | $482.06 |
| PayPal 4.99% + $0.49 (international) | $25.44 | $474.56 |
| Fiverr 20% seller fee | $100.00 | $400.00 |
Card processors take roughly 3% to 5%, while marketplaces like Fiverr take a much bigger cut in exchange for sending you clients. Neither is automatically better; what matters is how much you keep after fees for the work you do.
How To Price Your Work To Receive The Full Amount
If you want to receive exactly $100, you cannot simply charge $100. You have to charge more so the fee is covered. The reverse formula is:
Price to charge = (Amount you want + Fixed fee) / (1 - Total fee %)
- Stripe (2.9% + $0.30): (100 + 0.30) / 0.971 = $103.30
- PayPal (3.49% + $0.49): (100 + 0.49) / 0.9651 = $104.13
- Fiverr (20%): 100 / 0.80 = $125.00
A common mistake is adding the percentage on top (for example $100 + 20% = $120). That leaves you short, because the fee is taken from the larger total, not from $100.
Hidden Fees Many People Miss
- Currency conversion: converting USD to your local currency often adds a margin of 2% to 4% on top of the exchange rate.
- Withdrawal fees: moving money to your bank can carry a fixed or percentage fee.
- International card surcharges: cards from other countries usually cost extra.
- Chargebacks and disputes: a lost dispute can cost you the payment plus a dispute fee.
- Clearing time: some platforms hold new accounts' money for days, which affects cash flow even though it is not a fee.
Tips To Keep More Of Your Money
- Build fees into your price instead of absorbing them.
- Compare platforms using the same payment size, because fixed fees hurt small payments most.
- Withdraw less often to reduce fixed withdrawal fees.
- Check the exchange rate you actually get, not just the headline fee.
- Offer a discount for payment by cheaper methods, if your clients accept them.
Use A Calculator Instead Of Guessing
Our free payment fee calculator does the math in both directions: enter what a client pays to see your take-home, or enter what you want to receive to find the exact price to charge. You can edit the percentage and fixed fee to match your own account.
Frequently Asked Questions (FAQs)
How do I calculate PayPal fees?
Multiply the payment by the fee percentage and add the fixed fee. For example, a $100 payment at 3.49% + $0.49 costs $3.98, so you receive $96.02.
How much should I charge to receive $100 after fees?
Use (Amount + Fixed fee) / (1 - Fee %). With 2.9% + $0.30 you should charge $103.30; with Fiverr's 20% fee you should charge $125.
Does Fiverr take 20%?
Fiverr charges sellers a flat 20% service fee on each order, so a $100 gig pays $80 before any withdrawal fees.
Why is the fee higher on international payments?
International cards and currency conversion usually cost extra, so processors add an extra percentage on top of the standard rate.
Is Stripe cheaper than PayPal?
For the common US rates used in these examples Stripe is slightly cheaper per transaction, but fees vary by country, account and payment type, so compare your actual rates.
Are payment fee rates fixed?
No. Rates change by country, account type and date, so always verify them on the platform's official pricing page before you price your work.