How do I calculate what to charge so I receive an exact net amount?

To reverse-calculate your invoice amount for a payment gateway like Stripe (2.9% + $0.30), use the reverse formula: Total to Invoice = (Target Net Amount + Fixed Fee) / (1 - Percentage Rate). For example, to net exactly $1,000, charge ($1,000 + $0.30) / (1 - 0.029) = $1,030.18.

Is Stripe cheaper than PayPal for business payments?

Yes, in most scenarios Stripe is cheaper. Standard US Stripe is 2.9% + $0.30, whereas standard PayPal Commercial transactions are 3.49% + $0.49. On a $1,000 transaction, Stripe fees are $29.30 while PayPal fees are $35.39, saving you $6.09 per transaction.

Payment Processing Fee Calculator

Q: How much does Stripe take on a $100 charge?

For standard US domestic transactions, Stripe charges 2.9% + $0.30. On a $100 transaction, the fee is $3.20, and your net payout is $96.80. If the customer uses an international card, an extra 1.5% fee applies, resulting in a total fee of $4.70.

Calculate exact transaction deductions and net take-home pay for Stripe, PayPal, Wise, and Lemon Squeezy. Reverse-calculate invoices to cover processing fees.

Transaction amount

$10$2,500$5,000$7,500$10,000+

Primary Payment Gateway

International Card SurchargeOverseas customer card (+1.50%)

Currency Conversion (FX)Cross-currency settlement (+1.00%)

Marketplace Cut (Shopify/Gumroad)Platform commission percentage

Fee Breakdown97.1% kept

Net payout Processing fee

Net payout

$970.70

On a $1,000.00 sale

Total processing fees

$29.30

Effective rate: 2.93%

Alternative: reverse quote

$1,030.18

Charge this to net full $1,000.00

Comparison

Gateway Fee Matrix

Live processing fee comparison for a $1,000.00 transaction across major platforms.

Lowest fee

Wise Business0.55% + $0.40

Net payout$994.10

Total fee$5.90 (0.59%)

Stripe2.9% + $0.30

Net payout$970.70

Total fee$29.30 (2.93%)

Shopify Payments2.9% + $0.30

Net payout$970.70

Total fee$29.30 (2.93%)

PayPal Commerce3.49% + $0.49

Net payout$964.61

Total fee$35.39 (3.54%)

Lemon Squeezy5% + $0.50

Net payout$949.50

Total fee$50.50 (5.05%)

Paddle5% + $0.50

Net payout$949.50

Total fee$50.50 (5.05%)

Volume impact

At 50 monthly transactions of this size, selecting Wise Business retains an estimated $17,694.00/year more than PayPal.

Benchmarks

Common Transaction Scenarios

Select a preset to inspect fee structures across typical transaction sizes.

$5.00 Micro-transaction

Fixed fees take a larger percentage on small amounts.

$49.00 SaaS Subscription

Standard monthly recurring software billing.

$120.00 E-Commerce Cart

Direct-to-consumer order with international card surcharge.

$3,500.00 B2B Retainer

High-ticket commercial payment comparing bank transfer rates.

Reference

Formulas & Frequently Asked Questions

Technical breakdown of fee calculations and reverse invoice formulas.

FormulaReverse Invoice Calculation

Amount to charge = (Desired net amount + Fixed fee) / (1 - Percentage rate)

Why adding 2.9% is insufficient: If you want to net $100 and charge $102.90, the payment processor deducts 2.9% from the new $102.90 amount (taking $2.98 + $0.30 = $3.28), leaving $99.62. The reverse formula solves for the gross amount required to yield your exact net target after deductions.

How much does Stripe take on a $100 charge?

For standard US domestic transactions, Stripe charges 2.9% + $0.30. On a $100.00 charge, the base fee is $3.20 ($2.90 variable + $0.30 fixed), resulting in a net payout of $96.80.

If the customer pays with an international card, an additional 1.5% cross-border fee applies ($1.50). If automatic currency conversion occurs, an extra 1.0% applies, bringing total fees to $5.70.

What is the difference between direct gateways (Stripe) and Merchants of Record (Lemon Squeezy, Paddle)?

Direct gateways (Stripe) process payments directly into your merchant account. You remain responsible for sales tax, VAT remittance, and compliance across jurisdictions.

Merchants of Record (Lemon Squeezy, Paddle) act as the legal reseller of your digital products, automatically collecting and remitting global sales tax/VAT on your behalf. While their percentage fee is higher (5% + $0.50), they eliminate international tax filing overhead for software sellers.

Can credit card processing fees be passed to clients (surcharging)?

In B2B contracts, convenience fees or payment processing surcharges are commonly included in the invoice or factored into contract pricing. In retail consumer transactions, credit card surcharges are subject to state and card network regulations and must not exceed the actual processing cost.

Are processing fees refunded when issuing a customer refund?

Neither Stripe nor PayPal return the original transaction processing fee when a refund is issued. The full amount is returned to the buyer, while the seller absorbs the original processing fee.