About

Freelancers and digital merchants often underestimate the impact of payment processing fees on their bottom line. A standard transaction cost of 2.9% plus a fixed currency fee implies that invoicing a client for exactly $100 results in a net deposit of significantly less. Over a fiscal year, this variance creates a predictable accounting gap.

This tool solves the specific algebraic problem of reverse fee calculation. Instead of deducting fees from a total, it calculates the necessary gross amount required to achieve a specific net target. This is critical for generating invoices where the payer is contractually obligated to cover transaction costs. The system handles domestic rates, international cross-border surcharges, and currency-specific fixed fees defined by PayPal's latest merchant rate tables.

Accuracy in this calculation prevents revenue leakage. Small discrepancies in fixed fee constants (e.g., £0.30 vs €0.35) or regional percentage variations can compound into substantial losses for high-volume merchants. This utility relies on a static database of regional fee structures to ensure precise invoicing data.

Formulas

To determine the total amount to invoice so that the recipient receives a specific target value, the formula accounts for the percentage deduction and the fixed transaction fee simultaneously. The standard linear equation y = mx + b is rearranged to solve for the input amount.

{

Ask Amount = Net + Fixed1 − RateTotal Fee = Ask Amount − Net

Where Rate is the decimal representation of the percentage (e.g., 2.9% becomes 0.029) and Fixed is the currency-specific static fee.

Reference Data

Currency	Code	Standard Rate	Fixed Fee	Intl. Surcharge
United States Dollar	USD	2.9%	$0.30	+1.50%
Euro	EUR	3.4%	€0.35	Varies
British Pound	GBP	2.9%	£0.30	+1.29%
Canadian Dollar	CAD	2.9%	$0.30	+1.60%
Australian Dollar	AUD	2.6%	$0.30	+1.00%
Japanese Yen	JPY	3.6%	¥40	Varies
Brazilian Real	BRL	4.79%	R$0.60	+1.50%
Swiss Franc	CHF	3.4%	Fr0.55	+1.30%
Mexican Peso	MXN	3.4%	$4.00	+1.50%
Israeli Shekel	ILS	3.4%	₪1.20	+1.00%
Swedish Krona	SEK	3.4%	kr3.25	Varies
Norwegian Krone	NOK	3.4%	kr2.80	Varies
Danish Krone	DKK	3.4%	kr2.60	Varies
Hong Kong Dollar	HKD	3.4%	$2.35	+1.00%
Singapore Dollar	SGD	3.9%	$0.50	+1.00%

Frequently Asked Questions

The fee is calculated on the total amount transferred, not the net amount. When you use the reverse calculator to cover the fees, the total transaction size increases. Since the percentage fee applies to this larger total, the absolute fee value also increases slightly compared to the fee on the original smaller amount.

No. The Friends and Family transfer option typically incurs no fees when using a bank account or balance within the same country. This calculator is designed specifically for "Goods and Services" transactions where merchant fees are mandatory.

Cross-border payments generally incur an additional percentage surcharge on top of the domestic rate. This varies by region but is often an extra 1.50% or more. The calculator allows you to toggle "International" to add this specific surcharge to your estimation.

Micropayments utilize a different fee structure, typically a higher percentage (e.g., 5%) but a much lower fixed fee (e.g., $0.05). This is beneficial for transactions under $10 or $12. The standard rate is usually more cost-effective for amounts above that threshold.

PayPal sets the fixed fee portion based on the economic conditions and banking costs of the recipient's country. It is not simply a currency conversion of the USD 0.30 fee; it is a static value defined in PayPal's user agreement for that specific currency.