How PayPal Fees Affect Your Pricing
Understand how PayPal transaction fees work and how to factor them into your pricing strategy.
How do PayPal fees work?
PayPal charges a percentage of each transaction plus a fixed fee. For UK domestic payments, the standard rate is 2.9% + £0.30 per transaction. International payments cost 4.99% + £0.30.
Fee examples
| Amount received | Fee (domestic) | You keep |
|---|---|---|
| £10 | £0.59 | £9.41 |
| £50 | £1.75 | £48.25 |
| £100 | £3.20 | £96.80 |
| £500 | £14.80 | £485.20 |
| £1,000 | £29.30 | £970.70 |
How to price to cover fees
To receive a specific amount after fees, use this formula: Charge = (desired amount + £0.30) ÷ (1 - 0.029). Our PayPal Fee Calculator does this calculation for you instantly.
Are PayPal fees tax deductible?
Yes. PayPal fees are a legitimate business expense and can be deducted from your taxable profits.
Try the calculator
Use our PayPal Fee Calculator to find out exactly how much to charge for any amount.
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Last updated
Last reviewed: 2026-04-12T07:27:44.642Z.