How Much Should I Charge to Receive $1,000 After PayPal Fees?
PayPal deducts its fee from your payment before depositing. To net exactly $1,000, you need to charge your client more upfront.
Using PayPal Standard Card (G&S) — 2.99% + $0.49
PayPal fee deducted: $31.33
Formula: (1000 + 0.49) / (1 − 0.0299) = 1000.49 / 0.9701 = $1,031.33
$1,000 Gross-Up by PayPal Rate Type
The amount to charge depends on which PayPal payment method your client uses.
| Rate Type | Rate | Charge to Receive $1,000 | Fee Paid |
|---|---|---|---|
| Standard Card (Goods & Services) Default | 2.99% + $0.49 | $1031.33 | $31.33 |
| PayPal Checkout | 3.49% + $0.49 | $1036.67 | $36.67 |
| QR Code | 2.29% + $0.09 | $1023.53 | $23.53 |
Data source: PayPal US merchant fees. Last verified: April 2026 .
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What to Charge — Example Amounts
| I Want to Receive | PayPal US | Stripe US | Wise US | Stripe UK | PayPal UK | Wise UK | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Charge | Fee | Charge | Fee | Charge | Fee | Charge | Fee | Charge | Fee | Charge | Fee | |
| 100.00 | $103.59 | $3.59 | $103.30 | $3.30 | $102.28 | $2.28 | £101.73 | £1.73 | £103.30 | £3.30 | £100.64 | £0.64 |
| 250.00 | $258.21 | $8.21 | $257.78 | $7.78 | $253.14 | $3.14 | £254.01 | £4.01 | £257.78 | £7.78 | £251.29 | £1.29 |
| 500.00 | $515.92 | $15.92 | $515.24 | $15.24 | $504.58 | $4.58 | £507.82 | £7.82 | £515.24 | £15.24 | £502.37 | £2.37 |
| 1,000.00 | $1,031.33 | $31.33 | $1,030.18 | $30.18 | $1,007.44 | $7.44 | £1,015.43 | £15.43 | £1,030.18 | £30.18 | £1,004.53 | £4.53 |
| 2,500.00 | $2,577.56 | $77.56 | $2,574.97 | $74.97 | $2,516.04 | $16.04 | £2,538.27 | £38.27 | £2,574.97 | £74.97 | £2,511.01 | £11.01 |
| 5,000.00 | $5,154.61 | $154.61 | $5,149.64 | $149.64 | $5,030.37 | $30.37 | £5,076.35 | £76.35 | £5,149.64 | £149.64 | £5,021.80 | £21.80 |
Amounts shown in each processor's native currency. Using each processor's default rate type: PayPal US — Standard Card; Stripe US — Domestic Card; Wise US — USD → EUR; Stripe UK — UK Domestic Card; PayPal UK — Standard Domestic; Wise UK — GBP → EUR.
How PayPal Gross-Up Calculation Works
When a client pays you $1,000 via PayPal Goods & Services, PayPal deducts 2.99% of the total charge plus a $0.49 fixed fee before depositing into your account. At this transaction size, the percentage component ($29.94 on a $1,000 invoice) dominates — the $0.49 fixed fee is less than 2% of the total deduction.
To receive exactly $1,000, you need to charge more upfront using the gross-up formula: charge = (desired amount + fixed fee) / (1 − percent fee). For PayPal Standard Card: (1000 + 0.49) / (1 − 0.0299) = 1000.49 / 0.9701 = $1,031.33. That $31.33 covers the PayPal fee exactly.
At $1,000, the choice of PayPal rate type matters more than at smaller amounts. QR Code (2.29% + $0.09) requires only $1,023.53 — a $7.80 savings versus Standard Card. PayPal Checkout (3.49% + $0.49) requires $1,036.67 — $5.34 more than Standard Card. These differences are significant for businesses processing multiple $1,000 transactions monthly.
Unlike lower-value transactions where the fixed fee skews the result, at $1,000 the percentage rate is the dominant factor. A 0.7 percentage-point gap between QR Code and Standard Card produces a $7+ difference, making it worth considering QR Code for in-person transactions at this price level.
The Gross-Up Formula Explained
The gross-up formula solves a circular dependency: PayPal's percentage fee is applied to your charge amount, not to your desired net. If you simply add 2.99% to $1,000 and charge $1,029.90, PayPal's fee on $1,029.90 is $1,029.90 × 0.0299 + $0.49 = $31.28, leaving you with $998.62 — short by $1.38.
Algebraic derivation:
net = charge × (1 − p) − f
charge = (net + f) / (1 − p)
Verified with PayPal Standard Card ($1,000 net):
charge = (1000 + 0.49) / (1 − 0.0299) = 1000.49 / 0.9701 = $1,031.33
Check: $1,031.33 × 0.9701 − $0.49 = $1,000.00 ✓
Where p is the percentage
fee (0.0299 for standard card) and f is the fixed fee ($0.49). At $1,000, the fixed fee is negligible — the
percentage rate is the primary cost driver.
Real Examples
Freelance project milestone payment
You've delivered the first milestone on a $3,000 web project and the client owes you $1,000. Rather than invoicing exactly $1,000 and absorbing the PayPal fee yourself, use the gross-up: charge $1,031.33 via Standard Card so you net the full $1,000. If the client pays via QR code at an in-person handoff, you only need to charge $1,023.53 — saving both parties a noticeable amount.
Monthly retainer billing
Freelancers on a $1,000/month retainer need a consistent gross-up amount to invoice each cycle. With PayPal Standard Card, always invoice $1,031.33. If your client switches to PayPal Checkout for the added buyer protection, adjust to $1,036.67. Building this into your invoicing template avoids fee absorption month after month.
Event vendor or service provider deposit
Photographers, caterers, and event coordinators often collect a $1,000 deposit via PayPal. Quoting $1,031.33 as the deposit amount ensures you pocket a clean $1,000 after fees. At this transaction size, the QR Code rate saves $7.80 compared to Standard Card — worth offering in-person checkout if your setup allows it.
Small business wholesale order
A boutique wholesaler collecting $1,000 for a product order should pass the PayPal fee to buyers explicitly rather than absorbing it. Invoicing $1,031.33 (Standard Card) keeps the books clean. For recurring wholesale buyers, consider QR Code payments at $1,023.53 — the $7.80 savings per order adds up significantly at scale.
Common Mistakes When Charging for PayPal Fees
✗ Myth: Just add 3% to $1,000 and charge $1,030
Correct: Charging $1,030 leaves you short. PayPal's fee on $1,030 is $1,030 × 0.0299 + $0.49 = $31.29, so you'd receive $1,030 − $31.29 = $998.71 — you're $1.29 short. The correct gross-up via the formula is $1,031.33. At $1,000 the fixed fee ($0.49) is negligible, but the percentage must be applied to the charge, not the net.
✗ Myth: QR code payments only work in physical retail stores
Correct: PayPal QR Code payments work anywhere a buyer can scan a code — in person, via a shared screen, or even in a video call. At $1,000, using QR Code instead of Standard Card saves $7.80 in fees (charge $1,023.53 vs $1,031.33). For freelancers or service providers comfortable with digital handoffs, QR Code is a meaningful cost reduction.
✗ Myth: PayPal Checkout's buyer protection is worth paying extra for at $1,000
Correct: PayPal Checkout costs $1,036.67 vs Standard Card's $1,031.33 — $5.34 more per transaction. Standard Card (Goods & Services) already includes buyer and seller protection; the extra $5.34 for PayPal Checkout's enhanced flow rarely offsets the cost unless your business faces frequent chargebacks. For most sellers at the $1,000 level, Standard Card is the better default.
PayPal vs. Stripe: How Much to Charge for $1,000
To receive $1,000 via Stripe (domestic card, 2.9% + $0.30), charge $1,030.18. PayPal Standard Card requires $1,031.33 — just $1.15 more. At the $1,000 level, the difference is negligible for most businesses. For most freelancers and small businesses, the choice between PayPal and Stripe should be based on client preference and checkout experience, not the $1.15 fee difference per $1,000.
PayPal Standard Card
$1,031.33
to receive $1,000
Stripe Domestic Card
$1030.18
to receive $1,000
Difference: $1.15 more with PayPal
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Frequently Asked Questions
How much should I charge to receive exactly $1,000 after PayPal fees?
Charge $1,031.33 to receive exactly $1,000 via PayPal Standard Card (Goods & Services, 2.99% + $0.49). If your client pays via QR Code, charge $1,023.53. If they use PayPal Checkout, charge $1,036.67. These figures come from the gross-up formula: charge = (desired + fixed fee) / (1 − percent fee).
What is the PayPal fee on a $1,000 payment?
For a Standard Card (Goods & Services) payment of $1,031.33, PayPal deducts $31.33 — approximately 2.99% of the charge plus $0.49. If the client pays $1,023.53 via QR Code, the fee is $23.53. If they pay $1,036.67 via PayPal Checkout, the fee is $36.67.
Why is the charge $1,031.33 and not $1,029.90 (1,000 × 1.0299)?
Simply multiplying by 1.0299 gives $1,029.90, but that's wrong. PayPal's percentage fee applies to the charge amount, not the net you want. If you charge $1,029.90, PayPal takes $1,029.90 × 0.0299 + $0.49 = $31.28, leaving you with $998.62 — short by $1.38. The correct formula is charge = (1000 + 0.49) / (1 − 0.0299) = $1,031.33.
Is the QR Code rate really worth it at $1,000?
Yes — at $1,000, switching from Standard Card to QR Code saves $7.80 per transaction ($1,031.33 vs $1,023.53). That's meaningful for in-person businesses processing multiple $1,000 transactions per month. The fixed fee difference ($0.49 vs $0.09) is minor, but the percentage gap (2.99% vs 2.29%) creates significant savings at this transaction size.
Does the PayPal gross-up formula still work for international payments?
No — international PayPal payments carry an additional cross-border fee (typically 1.5% extra) on top of the standard rate. The formula still applies, but use the international rate (e.g., 4.49% + $0.49 for standard international card) instead of the domestic rate. For a $1,000 international net, the charge would be approximately $1,047.56.
How does the $1,000 PayPal charge compare with other transaction sizes?
At $1,000, the fixed fee ($0.49) accounts for only 0.05% of the charge — almost negligible. The percentage rate dominates completely. For comparison, at $10 the fixed fee is nearly 5% of the net, making rate type selection much more critical. At $1,000, the percentage gap between QR Code and Standard Card (0.7 percentage points) saves $7.86, while the fixed fee difference ($0.40) is trivial.
Can I ask my client to pay with PayPal Friends & Family to avoid the fee?
No. PayPal prohibits using Friends & Family (F&F) for business or commercial transactions. Doing so violates PayPal's Acceptable Use Policy, and neither party receives buyer or seller protection. If PayPal identifies the payment as commercial, they may reverse the transaction or suspend your account. Include the gross-up in your invoice price instead.
How does PayPal compare to Stripe for a $1,000 payment?
Stripe domestic card (2.9% + $0.30) requires charging $1,030.18 to net $1,000 — $1.15 less than PayPal's $1,031.33. At this transaction size, the fee difference is minimal. Your choice between PayPal and Stripe should be driven by client preference and checkout experience, not the $1.15 fee gap.
Compare with Other Processors
Stripe US
2.9% + $0.30 to 5.4% + $0.30
Calculate →PayPal US
2.29% + $0.09 to 3.49% + $0.49
Calculate →Wise US
0.41% + $1.70 to 0.66% + $1.70
Calculate →Stripe UK
1.5% + £0.20 to 3.25% + £0.20
Calculate →PayPal UK
1.5% + £0.10 to 4.89% + £0.30
Calculate →Wise UK
0.33% + £0.21 to 0.56% + £1.50
Calculate →Compare All Processors
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