If you buy or sell anything online, or accept payments for your business online, then the chances are that you’re familiar with how PayPal works. But, many of us don’t actually understand how PayPal calculate their fees. We just have a vague ideas that we might get charged fees without having an exact figure in our minds. But, if you’re running a business, then it’s important to know exactly how much money you’re going to receive when you accept payments from PayPal. Not knowing can have a huge impact on your business! So, hopefully this post will help you figure out how to calculate PayPal fees so that you can be more prepared and invoice or quote accordingly going forwards.
Why is it important to know how much PayPal will charge?
If you’re a blogger, then the chances are that many of your clients pay your invoices through PayPal. When you agree a fee with a client, it’s important that you know how to calculate PayPal fees and take that amount into account so that you know exactly how much money you’re going to make from the agreement.
It’s important to understand that there is a big difference in accepting payments from friend and family and taking payments from clients. When somebody sends you a payment as friends and family, there is no fee involved. However, when an invoice is paid or a client sends payment to your PayPal account, then YOU will be charged a fee.
How to calculate PayPal fees
PayPal fees vary from country to country, so it’s important to know what currency you will be paid in when you are first negotiating payment details with your client.
Working out PayPal fees can get a little tricky, which is why I’ve created this really handy PayPal calculator. This calculator has been set with PayPal fees 2019 – but PayPal are able to change their fee structure at any time, so if you spot any discrepancies then please leave a comment below.
Using this calculator, it’s really easy to quickly enter your figures and know EXACTLY how much PayPal will deduct from the amount you receive.
As always, I’d love any feedback in the comments. Let me know if you found this useful!
PIN IT – HOW TO CALCULATE PAYPAL FEES
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