About

For freelancers, e-commerce merchants, and agencies, payment processing fees are a significant line item that directly erodes profit margins. A 3% difference in fees can amount to thousands of dollars annually. While platforms display their rates, the final deposit amount is often obscure until the transaction is complete, especially when international cards or currency conversion is involved.

This tool decodes the complexity of processor fee structures. By selecting a provider like PayPal or Stripe, users can instantly see the breakdown of what the client pays versus what actually lands in the bank account. The "Reverse Calculation" feature is particularly valuable for invoicing; it tells you exactly how much to charge to receive a specific net amount, ensuring the client covers the transaction costs. A cross-border toggle is included to account for the additional percentage points often hidden in the fine print for international payments.

Formulas

The calculator uses linear equations to determine the fees.

1. Standard Calculation (You Invoice X):

Fee = (Amount × Rate) + Fixed

Net = Amount − Fee

2. Reverse Calculation (You Need Net Y):

To receive exactly Y, the invoice amount X must be:

X = Y + Fixed1 − Rate

Reference Data

Provider	Standard Rate	Fixed Fee	Intl Surcharge	Best For
PayPal (Standard)	2.9%	$0.30	+1.50%	Small volume, ease of use
Stripe	2.9%	$0.30	+1.00%	SaaS, Custom Integration
Wise (Transfer)	≈0.4%	Variable	Included	International Bank Transfers
Square	2.6%	$0.10	Varies	POS / Physical Retail

Frequently Asked Questions

This calculator handles the "Cross-Border" transaction fee (usually an extra 1-1.5%). However, pure currency conversion (FX spread) charged by banks or PayPal (often 3-4% above mid-market) is separate. Use the "Custom" option to add that percentage if you know the bank's spread.

When you ask the client to pay the fee, the fee itself becomes part of the total transaction volume, which is then taxed by the processor. Mathematically, you are paying a fee on the fee. The formula accounts for this recursive cost.

Rates are based on standard US domestic structures for major providers. However, platforms frequently update policies (e.g., PayPal's Friends & Family vs. Goods & Services). Always check the official merchant agreement for the exact current terms.

Some providers offer a special rate for transactions under $10 (e.g., 5% + $0.05). If your transaction volume is high but individual value is low, switching to a micropayment plan can save significant money.