Last updated: October 2026
Estimate only. Tax rules vary by product, service, location and registration status. This is not professional tax or financial advice - check with a qualified adviser or the relevant tax authority.
How much does PayPal take from a payment? For UK commercial transactions, PayPal charges 2.9% plus £0.30 per payment, so a £50 payment from a UK buyer costs £1.75 and you receive £48.25. Buyers abroad cost more: add 1.29% for EEA senders or 1.99% for senders outside the EEA, including the US.
What does the PayPal fee calculator do?
PayPal’s UK business fees depend on where the buyer is sending from, which makes the maths fiddly. This free calculator handles all three UK rates: enter a payment to see the fee and what lands in your account, or enter the net you want and it tells you what to charge.
Current PayPal UK fees
For UK domestic commercial transactions PayPal charges 2.9% + £0.30 per transaction. There is a +1.29% surcharge when the sender is in the EEA (4.19% + £0.30) and a +1.99% surcharge when the sender is outside the EEA, including the US (4.89% + £0.30). This calculator is GBP only. Figures verified against PayPal UK business fees in October 2026.
The formula
Forward (what will I receive): fee = payment x rate + £0.30, then net = payment – fee.
Reverse (what should I charge): charge = (net you want + £0.30) / (1 – rate). The fixed 30p is grossed up along with the percentage.
Worked example
A £50 payment from a UK buyer: PayPal takes £1.75 and you receive £48.25. From a US buyer (4.89%): the fee is £2.75 and you receive £47.25. Working backwards: to keep £48.25 net from a UK buyer, charge £50.00.
What is not included
Currency conversion on cross-currency payments is charged separately by PayPal and is not in these figures. Micropayment and charity rates, where they apply, are also not covered.
Frequently asked questions
Why does the buyer’s location change the fee?
PayPal adds a cross-border surcharge to the domestic rate: 1.29 percentage points for EEA senders and 1.99 points for senders outside the EEA. The £0.30 fixed fee stays the same.
Is this for business or personal payments?
These are UK commercial (business) rates. Personal friends-and-family payments funded from a balance or bank can be free, but goods-and-services payments always attract the fee.
How do I make the buyer cover the fee?
Use the reverse mode: enter the amount you want to end up with and the calculator gives you the price to charge so the fee is absorbed.
Does the fee apply to refunds?
PayPal’s handling of fees on refunds has changed over time and depends on the case. Check the current PayPal policy for refunded transactions.
What about currency conversion?
If the payment arrives in another currency, PayPal charges for conversion on top of the transaction fee. This calculator is GBP only and does not include that extra charge.
References
Fee schedule: PayPal UK business fees (verified October 2026).
Related calculators: Upwork fee calculator, Fiverr fee calculator, PayPal fee calculator, Stripe fee calculator.
Reviewed by
Arham Arshad, founder of LancerBill, checked this tool and its calculation method in October 2026.