Banking Category Banking: the easy, simple banking guide

How to Calculate PayPal Fees

PayPal is a fast, safe way to send and receive money on the Internet.

PayPal is useful for paying for online purchases or simply sending money to a friend.

For some transactions, however, PayPal charges a small fee. You can calculate the cost of these fees before sending the money transfer.

Navigate your Internet browser to

Click on the word "Fees" found at the bottom of the screen. This will display a chart from PayPal listing the costs of sending or receiving various forms of payment. As of 2009, PayPal's fees range from 1.9% + $.30 to 2.9% + $.30 per transaction, depending on the amount of money transferred and the type of transfer. If the transfer is for an online purchase, the fee is paid by the seller and is 2.9% + $.30 for transactions up to £1,950. The rate falls as the amount of the transfer increases. If the transfer is being sent for personal reasons, the transfer is free if the money comes from a PayPal account or from a linked bank account. Otherwise, the fee is 2.9% + $.30 and the sender chooses who pays the fee. Because these fees could change at any time, however, check the web page before making the transfer.

Start with the amount of money you plan to send or receive. Using a calculator, multiply this number by the percentage fee listed by PayPal. The result is the amount of fee PayPal is going to charge for that money transfer.


PayPal may change its fee schedule at any time. Make sure to return to the PayPal fee web page each time to verify that the rates have not changed. This will ensure you know precisely how much a money transfer is going to cost, before you send the transfer.

Things Needed

  • Internet connection
  • PayPal account
  • Calculator