PayPal Fee Calculator UK

PayPal's UK business fee page, last updated on 1 October 2026 and checked by us on 11 November 2026, charges UK accounts 2.9% plus a fixed £0.30 to receive a domestic commercial payment, whether that is a PayPal Checkout button on your shop, an invoice, or a friend paying you for goods. When the buyer's PayPal account belongs to another market, PayPal adds a percentage: 1.29% when the sender is in the European Economic Area and 1.99% from every other market, including the US. Payments between accounts registered in the UK, Guernsey, Jersey and the Isle of Man count as domestic. This calculator applies those rates to the full amount the buyer sends, item plus postage, and shows what lands in your balance in pounds.

The UK rate card in one table

The fixed fee is in the currency you receive. Receive pounds and it is £0.30; receive dollars or euros and PayPal's fixed-fee table for that currency applies instead, and a currency conversion spread kicks in when you move the money into pounds. The calculator assumes you are paid in pounds, which is what most UK sellers using PayPal on their own site or on social marketplaces see.

Why small payments cost proportionally more

Because 30p is charged on every payment, the effective rate falls as the payment grows. A £5 payment costs £0.45, which is 9% of the money. A £300 payment costs £9.00, exactly 3%. If you sell low-priced items through PayPal, bundling them into one invoice saves a fixed fee for every item you combine. If you sell high-value items, the percentage is what matters and the 30p hardly moves the total.

fee = (2.9% + international surcharge) × (item + postage) + £0.30
surcharge = 0% UK, 1.29% EEA, 1.99% other markets
you receive = payment − fee

Goods and services, eBay and PayPal

eBay UK no longer routes sales through PayPal, so this calculator is for direct PayPal sales: your own website, Instagram or Facebook buyers, invoices, and platforms that still pay out through PayPal. Personal payments between friends and family inside the UK are a different product with no seller protection; do not use them for sales. If a buyer pays with a card through your PayPal checkout, the same commercial rate applies on this page's model.

VAT and your PayPal fees

PayPal's UK fee page lists its transaction fees without adding VAT, so the calculator adds no VAT line to them. If you are VAT-registered, your own price includes 20% output VAT that you owe HMRC. Tick the VAT-registered switch and the calculator takes one sixth of the payment (the VAT share of a VAT-inclusive price at the 20% standard rate) out of your profit, so you see the money you actually keep.

Worked examples

Pricing so PayPal's fee is covered

If you want a fixed amount to land in your balance, you cannot simply add 2.9% to the price, because PayPal also takes 2.9% of the extra you add. The exact gross-up is (target + £0.30) ÷ (1 − 0.029). To receive £50.00 from a UK buyer, ask for £51.80; from a US buyer, ask for £52.89, because the rate there is 4.89%. Use the 'Price to charge' mode at the top of the calculator and it does the algebra for you, including your item cost and target profit.

Two practical habits keep the fee predictable. First, invoice in pounds; asking a US customer to pay in dollars means PayPal's US dollar fixed fee and a conversion spread on top. Second, quote postage in the same invoice rather than as a second payment, because each separate payment pays its own 30p.

Refunds

PayPal's fee page sets out separately how fees on refunded commercial transactions are handled. Before you rely on getting the fixed fee back, read the refund section of the page linked below for your account type; the calculator only models a completed sale.

What is not included

• Currency conversion: when PayPal converts money for you, it applies its own exchange rate, which includes a spread. Keep your balance in pounds and receive in pounds to avoid it.
• Chargeback and dispute fees, which apply only if a buyer disputes a card payment.
• Tiered merchant rates for high-volume accounts, which PayPal applies only after it confirms your enrolment; until then the standard rate on this page applies.
• Instant transfer fees to a debit card. A standard bank withdrawal is free.

Compare this with selling the same item on a marketplace. On eBay UK a private seller pays nothing on a domestic sale; on Etsy a UK shop pays its own 4% + £0.20 processing plus the 6.5% transaction fee; on Depop a UK seller pays a 2.9% + £0.30 processing fee and no selling fee. PayPal is cheap for direct sales, but you are doing the marketing yourself.

How to use this calculator

1. Enter the item price and postage. PayPal charges its percentage on everything the buyer sends.
2. Choose where the buyer's account is. UK, EEA or any other market. The surcharge depends on the sender's account, not the delivery address.
3. Tick VAT-registered if it applies. We then deduct the VAT inside your price from your profit.
4. Read the fee bar. The bar shows PayPal's share against your costs and profit.

Frequently asked questions

Sources and updates

• PayPal UK — Business fees (last updated 1 October 2026), checked 2026-11-11.
• GOV.UK — VAT rates, checked 2026-11-11.