PayPal Fee Calculator UK
Work out exactly how much PayPal will charge you on a UK transaction. Whether you are selling goods, invoicing a client, or receiving a payment for freelance work, this calculator shows you the fee and what you actually take home. You can also use the reverse mode to figure out how much to charge so that you receive the exact amount you need after fees.
You Receive After Fees
£96.80
PayPal keeps £3.20 (3.2% effective rate)
| Breakdown | Amount |
|---|---|
| Payment amount | £100.00 |
| PayPal fee | £3.20 |
| You receive | £96.80 |
| Effective fee rate | 3.2% |
How PayPal Fees Work in the UK
PayPal's standard fee for receiving commercial payments in the UK is 2.9% + £0.30 per transaction. This means the fee has two parts: a percentage of the total payment amount and a small fixed charge that applies regardless of how much is sent.
For example, if someone pays you £100, the fee is calculated as:
- Percentage part: £100 × 2.9% = £2.90
- Fixed part: £0.30
- Total fee: £2.90 + £0.30 = £3.20
- You receive: £100 − £3.20 = £96.80
The fixed £0.30 means that smaller transactions lose a larger percentage to fees. On a £10 payment, the effective rate works out at around 5.9%, whereas on a £1,000 payment it drops to roughly 3.2%.
The Reverse Calculation
If you need to receive a specific amount after fees — say you want exactly £500 to land in your account — you need to request more than £500 to cover the fee. Simply adding 2.9% + £0.30 to your desired amount does not work because PayPal calculates the fee on the higher total.
The correct formula is:
Amount to request = (desired amount + £0.30) ÷ (1 − 0.029)
So to receive exactly £500, you would need to request £515.25. PayPal takes its £15.24 fee (2.9% of £515.25 plus £0.30), and you end up with your £500. Use the “I want to receive an exact amount” mode in the calculator above to do this automatically.
PayPal Fee Examples
Here are some common UK payment amounts and the fees you can expect at the standard 2.9% + £0.30 rate:
| Payment | Fee | You Receive | Effective Rate |
|---|---|---|---|
| £10 | £0.59 | £9.41 | 5.9% |
| £25 | £1.03 | £23.97 | 4.1% |
| £50 | £1.75 | £48.25 | 3.5% |
| £100 | £3.20 | £96.80 | 3.2% |
| £250 | £7.55 | £242.45 | 3.0% |
| £500 | £14.80 | £485.20 | 3.0% |
| £1,000 | £29.30 | £970.70 | 2.9% |
Tips for Reducing PayPal Fees
- Use Friends & Family for personal payments. If you are splitting a dinner bill or repaying a mate, the Friends & Family option is free for domestic bank-funded transfers.
- Consider micropayment pricing. If you regularly receive payments under £5, PayPal offers a micropayment rate of 5% + £0.05. The lower fixed fee makes this cheaper for very small transactions.
- Avoid currency conversions. If you deal with international clients, ask them to send in GBP where possible. PayPal's currency conversion margin adds an extra cost on top of the standard fee.
- Factor fees into your pricing. Rather than absorbing the cost, build the fee into the price you quote. Use the reverse calculator above to work out the exact figure.
- Withdraw to your bank promptly. While this does not reduce fees, keeping funds in your PayPal balance unnecessarily means your money is not working for you elsewhere. Transfer to your bank account as soon as practical.
- Compare with alternatives. For larger or recurring payments, services such as Stripe, Wise, or direct bank transfers may offer lower fees. It is worth comparing rates if PayPal charges become significant.
Frequently Asked Questions
What is the current PayPal fee rate in the UK?
For standard commercial transactions in the UK, PayPal charges 2.9% of the transaction amount plus a fixed fee of £0.30 per transaction. This applies to payments received for goods and services through your PayPal account.
Does PayPal charge fees for Friends & Family payments?
No. Sending money to friends and family within the UK using your PayPal balance or a linked bank account is free. However, fees do apply if the sender uses a credit or debit card, or if the payment is sent internationally.
Are PayPal fees different for international transactions?
Yes. International payments typically incur higher fees. PayPal charges an additional cross-border fee on top of the standard commercial rate, and currency conversion adds a further margin. The exact rates depend on the countries involved.
What is the difference between PayPal business and personal accounts?
Personal accounts are designed for everyday use such as shopping online and sending money to friends. Business accounts offer additional features like invoicing, multi-user access, and reporting tools. Both account types are subject to the same 2.9% + £0.30 fee on commercial payments received.
How can I avoid PayPal fees?
You cannot fully avoid fees on commercial transactions, but you can reduce your costs. Use Friends & Family for personal payments, fund transactions from your bank account rather than a card, and consider PayPal’s micropayment rate (5% + £0.05) if you regularly receive small payments under £5.
Does the buyer or the seller pay PayPal fees?
PayPal fees are charged to the person receiving the payment (the seller). The buyer pays the full amount, and PayPal deducts its fee before depositing the remainder into the seller’s account. It is against PayPal’s terms to add a surcharge to cover fees, though you can factor them into your pricing.
Important Disclaimer
This calculator provides estimates based on PayPal's published standard UK commercial transaction rate of 2.9% + £0.30. Actual fees may vary depending on your account type, payment method, and transaction details. This does not constitute financial advice. Always check PayPal's current fee schedule for the most up-to-date information.
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