Stripe & PayPal Fee & Net Payout Calculator
Calculate exact merchant deductions, compare processing costs between Stripe and PayPal, and calculate the exact gross invoice amount needed to receive your target payout.
How Stripe and PayPal Processing Fees Work in 2026
When selling digital products, SaaS subscriptions, or freelance consulting services, understanding merchant payment processing fees is essential to protect your operating margins. Both Stripe and PayPal calculate their transaction deductions through a two-part pricing structure: a percentage rate based on transaction volume, and a fixed per-transaction fee that covers interchange clearing.
The Standard 2026 Fee Schedules Compared
Here is how standard online card processing pricing breaks down between Stripe and PayPal for standard domestic and cross-border commercial transactions:
| Payment Platform | Domestic Online Rate | Fixed Transaction Fee | International Cross-Border Surcharge |
|---|---|---|---|
| Stripe Payments | 2.90% | $0.30 USD | +1.50% (+1.00% if currency conversion) |
| PayPal Commercial (Goods & Services) | 2.99% | $0.49 USD | +1.50% (+3.00% - 4.00% currency conversion) |
| Stripe Terminal (In-Person / POS) | 2.70% | $0.05 USD | +1.00% |
| PayPal QR Code Payments (> $10) | 1.90% | $0.10 USD | +1.50% |
How the Reverse "Gross-Up" Formula Works for Invoicing
A common mistake made by freelancers and businesses when trying to pass processing fees onto a client is simply calculating 2.9% of their desired target amount and adding it to the bill. For example, if you want to receive $1,000, adding $29.30 results in an invoice of $1,029.30. However, Stripe charges 2.9% on the new higher total ($1,029.30 × 2.9% + $0.30 = $30.15), meaning you only receive $999.15!
The Mathematically Correct Gross-Up Formula:
Required Invoice Amount = (Target Net Amount + Fixed Fee) / (1 - Percentage Rate)
For a $1,000 net target at 2.9% + $0.30:
Invoice Amount = ($1,000 + $0.30) / (1 - 0.029) = $1,000.30 / 0.971 = $1,030.18
When your client pays $1,030.18, Stripe deducts ($1,030.18 × 2.9%) + $0.30 = $30.18, depositing exactly $1,000.00 into your bank account. Use the "Gross-Up Invoice" toggle above to automatically perform this math on any transaction size.
Frequently Asked Questions
Does Stripe or PayPal refund processing fees when issuing a customer refund?
No. Neither Stripe nor PayPal returns payment processing fees when you issue a full or partial refund to a customer. The fixed clearing fee and variable percentage fee remain deducted from your merchant account balance.
How can I reduce payment gateway fees legally?
You can lower your merchant processing costs by: (1) Offering ACH direct debit or bank transfer options (Stripe charges 0.8% capped at $5 for ACH), (2) Incentivizing annual upfront billing to reduce fixed per-transaction fee overhead, (3) Using multi-currency accounts (like Wise Business or Stripe local bank rails) to avoid cross-border currency conversion surcharges.