Calculation methodology and sources
Our calculations are deliberately transparent. The website is a planning tool and is not connected to a PayPal account.
Primary source
PayPal — Merchant and Business Fees (US), page marked last updated October 1, 2026. We use illustrative US-dollar rates for the selected payment categories, not an exhaustive list of PayPal products.
Fee formula
For ordinary percentage-plus-fixed channels: estimated fee = gross amount × percentage rate + fixed fee. Net proceeds = gross amount − estimated fee. For eligible international commercial payments, add 1.50 percentage points to the applicable percentage rate. All figures are expressed in USD.
Reverse calculation
To achieve a desired net amount, gross amount = (desired net + fixed fee) ÷ (1 − rate). We round the gross upward to cents and check the result against the cent-rounded estimated fee. A 100% or higher effective rate is invalid for reverse calculation.
Profit and volume calculations
Profit estimate = sale price − payment-processing fee − product/fulfillment cost − other order costs. Profit margin = profit ÷ sale price × 100. Monthly fee estimate = rounded fee per transaction × number of transactions. These calculations assume uniform order size and method for the volume tool.
Rounding and limitations
Displayed money is rounded to the nearest cent using conventional positive-number rounding. The processor's internal rounding may differ by one cent. Special fees, disputes, refunds, exchange rates, account-specific contracts, payment caps, and other categories are not modeled unless you enter a custom rate. We do not infer tax deductibility or legal permission to add a surcharge.
Editorial approach
We prioritize understandable tools, clear rate references, explicit assumptions, and examples readers can verify. We are independent of PayPal and do not claim to have inside knowledge of a merchant's pricing.