From the transaction amount, percentage fee rate, and fixed fee, compute the PayPal fee and the net amount you actually receive.
Input Data
Results
At a glance:The PayPal fee is a percentage of the transaction amount plus a fixed per-transaction fee; the net is the amount left after the fee.
Formula
fee = amount × percentFee% + fixedFee
netAmount = amount − fee
$$Fee = Amount \\times \\dfrac{Percent}{100} + FixedFee$$$$Net = Amount - Fee$$How to Use
- Enter the transaction amount.
- Enter the percentage fee rate and fixed fee.
- Review the fee and net amount.
FAQ
Why does PayPal charge both a percentage and a fixed fee?
The 'percentage + fixed per-transaction' structure is common among payment platforms and has a logic. The percentage covers risk and cost that scale with the amount — disputes, refunds, fraud losses grow with the sum. The fixed fee covers the basic cost of processing each transaction — systems, reconciliation, risk control — regardless of size. The practical effect: small transactions are especially poor value. With a HK$2.35 fixed fee, a HK$10 charge spends 23.5% on the fixed fee alone; on a HK$1,000 charge it is negligible. Merchants taking many small payments should watch the erosion closely.
Does the fee differ for cross-border or other-currency payments?
Yes, often substantially — the most overlooked cost. Cross-border transactions (payer and payee in different countries) usually carry a higher percentage than domestic, for higher risk and settlement cost. If currency conversion is involved, the platform adds a 'currency conversion fee' on top of the market rate — a hidden cost not always labelled 'fee'. So the same amount cross-border plus conversion can cost far more than this calculator's single-rate estimate shows. For frequent cross-border receipts, check the cross-border rate, watch the conversion markup, and use a higher composite rate here or rely on the platform's actual deduction.
How should a merchant build the fee into pricing?
Including the fee in pricing protects margin. Three common ways: (1) absorb — treat the average fee as a cost built into all prices, clean for customers but not perfectly precise per transaction; (2) gross-up — quote so that after the fee you receive your target net; note this is not simply adding the fee, because the fee is charged on the gross, so use the reverse formula: gross = (target net + fixed fee) ÷ (1 − percent rate); (3) evaluate whether the payment method is worth it — for thin-margin or small-amount businesses, high fees can eat most profit, so consider a minimum charge, other payment methods, or pricing it in. Always compute the real per-transaction cost here first. Also note some platforms' terms forbid surcharging customers.
If I want to net a certain amount, how do I gross-up the quote, and why not just add the fee?
This is the practical need: you have a target net amount and must work back the gross to charge. The trap is that you cannot simply add the fee to the net. Why: suppose you want net HK$1,000 at 3.4% + HK$2.35. Intuitively fee ≈ 1,000 × 3.4% + 2.35 = 36.35, so quote 1,036.35. But the fee is on the actual received amount (1,036.35), not your target (1,000). Recompute: fee = 1,036.35 × 3.4% + 2.35 = 37.59, net = 998.76 — short. Correct gross-up: net = G − (G×p + F) → G = (N + F) ÷ (1 − p). Here G = (1,000 + 2.35) ÷ (1 − 0.034) ≈ HK$1,037.63; fee = 1,037.63 × 3.4% + 2.35 = 37.63, net = 1,000.00 ✓. The right quote (1,037.63) is slightly above the naive (1,036.35) — that is the 'fee on the fee'. Remember: gross-up uses (target net + fixed fee) ÷ (1 − percent rate), a division, not an addition. Also confirm the platform allows surcharging, and consider customer experience; many merchants absorb the fee in price instead.
Besides PayPal, what payment methods exist and how to compare true cost?
PayPal is one of many. Common types: (1) third-party platforms (PayPal, Stripe) — fast setup, cross-border and multi-currency, trusted, but higher fees (percent + fixed), dearer cross-border and on conversion; good for cross-border e-commerce. (2) bank card acquiring (merchant account) — may be cheaper at scale (negotiable rates) but higher barriers, possibly monthly fees and longer settlement. (3) local e-wallets / instant transfer (e.g. FPS in Hong Kong) — very low or free for local small amounts, fast, but local-only. (4) bank transfer / wire — common for large B2B, fixed per-transfer fee not percentage, cheaper for big sums, but slower cross-border. To compare true cost: do not just compare the percentage — compute total per-transaction cost including fixed fee (small amounts have high fixed-fee share), cross-border and conversion surcharges, plus monthly/setup/withdrawal/refund/dispute fees, and non-fee factors like speed, trust and integration. List your typical transactions, compute net under each method, and pick the low-total-cost, good-experience mix; many offer several methods to spread cost and risk.
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.