How Much Should I Charge to Receive $500 After PayPal Fees?
PayPal deducts its fee from your payment before depositing. To net exactly $500, you need to charge your client more upfront.
Using PayPal Standard Card (G&S) — 2.99% + $0.49
PayPal fee deducted: $15.92
Formula: (500 + 0.49) / (1 − 0.0299) = 500.49 / 0.9701 = $515.92
$500 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 $500 | Fee Paid |
|---|---|---|---|
| Standard Card (G&S) Default | 2.99% + $0.49 | $515.92 | $15.92 |
| QR Code | 2.29% + $0.09 | $511.81 | $11.81 |
| PayPal Checkout | 3.49% + $0.49 | $518.59 | $18.59 |
Data source: PayPal US merchant fees. Last verified: April 2026 .
Try the Calculator
Enter any target amount to calculate what to charge. Switch between processors to compare. Share the URL — it encodes your amount and processor for easy bookmarking.
Want forward calculation? Open PayPal US fee calculator
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 |
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 $500 via PayPal Goods & Services, PayPal deducts 2.99% of the total charge plus a $0.49 fixed fee before depositing into your account. If you invoice exactly $500, you receive only $484.55 — a $15.45 shortfall. To receive the full $500, you need to charge more upfront.
The gross-up formula is: charge = (desired amount + fixed fee) / (1 - percent fee). For PayPal Standard Card and a $500 target: (500 + 0.49) / (1 - 0.0299) = 500.49 / 0.9701 = $515.92. That $15.92 covers PayPal's fee exactly.
PayPal has three rate types for US merchants. Standard Card (Goods & Services) at 2.99% + $0.49 is the default for most online invoices. QR Code at 2.29% + $0.09 is cheaper and works for in-person and screen-share payments. PayPal Checkout at 3.49% + $0.49 costs the most but provides an enhanced checkout experience.
At $500, the rate type spread is meaningful. QR Code ($511.81) saves $4.11 compared to Standard Card ($515.92), and $6.78 compared to PayPal Checkout ($518.59). For service providers processing several $500 invoices monthly, the QR Code savings can reach $50+ per month — worth considering for any payment you can take in person or via screen share.
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 $500 and charge $514.95, PayPal's fee on $514.95 is $514.95 × 0.0299 + $0.49 = $15.89, leaving you with $499.06 — short by $0.94.
Algebraic derivation:
net = charge × (1 − p) − f
charge = (net + f) / (1 − p)
Verified with PayPal Standard Card ($500 net):
charge = (500 + 0.49) / (1 − 0.0299) = 500.49 / 0.9701 = $515.92
Check: $515.92 × 0.9701 − $0.49 = $500.00 ✓
Where p is the percentage
fee (0.0299 for standard card) and f is the fixed fee ($0.49). At $500, the fixed fee is a small fraction of
the total — the percentage rate drives most of the cost.
Real Examples
Freelance web development milestone
You've completed a $500 milestone on a website project. Rather than invoicing $500 and absorbing the PayPal fee, charge $515.92 via Standard Card to receive exactly $500. If your client can pay via QR code (in a video call or in-person meeting), the charge drops to $511.81 — saving your client $4.11 with no impact on your net.
Service provider deposit — photography, catering, events
A photographer collecting a $500 deposit for an event should quote $515.92 as the deposit amount via PayPal Standard Card. This ensures a clean $500 deposit in the books. At this transaction size, the QR Code rate saves $4.11 versus Standard Card — worth offering if the client can scan a code in person or on a shared screen.
Consulting half-day rate
A consultant charging a $500 half-day rate and accepting PayPal should invoice $515.92 to receive exactly $500 after fees. If the client opts for PayPal Checkout instead of Standard Card, the charge rises to $518.59 — $2.67 more. For recurring engagements, clarify the payment method upfront so both parties know the exact amount.
Small product order or wholesale payment
A small business collecting $500 for a product order should pass the PayPal fee to the buyer explicitly. Standard Card requires $515.92 — a 3.18% effective fee. QR Code at $511.81 brings the effective rate down to 2.36%. For repeat wholesale buyers, steering them toward QR Code payments saves $4.11 per order.
Common Mistakes When Charging for PayPal Fees
✗ Myth: Just add 3% to $500 and charge $515
Correct: Charging $515 leaves you short. PayPal's fee on $515 is $515 x 0.0299 + $0.49 = $15.89, so you'd receive $515 - $15.89 = $499.11 — $0.89 short. The correct gross-up via the formula is $515.92. The percentage is applied to the charge amount, not the net you want to receive.
✗ Myth: PayPal Friends & Family avoids fees on a $500 payment
Correct: PayPal Friends & Family (F&F) does avoid fees, but using it for business transactions violates PayPal's Acceptable Use Policy. If PayPal detects commercial activity through F&F, they may reverse the transaction, freeze funds, or suspend your account. At $500, the $15.92 fee is a cost of doing business — build it into your invoice using the gross-up formula.
✗ Myth: QR Code payments are only for retail stores at a physical POS
Correct: PayPal QR codes work anywhere the buyer can scan — in person, via shared screen, or in a video call. At $500, QR Code saves $4.11 versus Standard Card ($511.81 vs $515.92). The lower percentage (2.29% vs 2.99%) and lower fixed fee ($0.09 vs $0.49) both contribute to meaningful savings at this transaction size.
PayPal vs. Stripe: How Much to Charge for $500
To receive $500 via Stripe (domestic card, 2.9% + $0.30), charge $515.24. PayPal Standard Card requires $515.92 — $0.68 more. The difference is modest at $500 and shouldn't drive your processor choice. For most freelancers and small businesses, the choice between PayPal and Stripe should be based on client preference and checkout experience, not the $0.68 fee difference per $500.
PayPal Standard Card
$515.92
to receive $500
Stripe Domestic Card
$515.24
to receive $500
Difference: $0.68 more with PayPal
Compare all processors on the reverse calculator or see the full fee comparison.
Calculate for Any Amount
Frequently Asked Questions
How much should I charge to receive $500 after PayPal fees?
Charge $515.92 to receive exactly $500 via PayPal Standard Card (Goods & Services, 2.99% + $0.49). If your client pays via QR Code, charge $511.81. If they use PayPal Checkout, charge $518.59. These figures come from the gross-up formula: charge = (desired + fixed fee) / (1 - percent fee).
What is the PayPal fee on a $500 payment?
For a Standard Card (Goods & Services) charge of $515.92, PayPal deducts $15.92 — approximately 2.99% of the charge plus $0.49. If the client pays $511.81 via QR Code, the fee is $11.81. If they pay $518.59 via PayPal Checkout, the fee is $18.59.
Is the QR Code rate worth it at $500?
Yes — at $500, switching from Standard Card to QR Code saves $4.11 per transaction ($515.92 vs $511.81). The lower percentage (2.29% vs 2.99%) and lower fixed fee ($0.09 vs $0.49) both contribute. For freelancers or service providers handling multiple $500 invoices per month, the savings add up quickly.
How does the PayPal gross-up formula work for $500?
The formula is: charge = (desired net + fixed fee) / (1 - percent fee). For Standard Card: (500 + 0.49) / (1 - 0.0299) = 500.49 / 0.9701 = $515.92. PayPal deducts $515.92 x 0.0299 + $0.49 = $15.92 as its fee, leaving exactly $500.00 in your account.
How does PayPal compare to Stripe for receiving $500?
To receive $500 via Stripe domestic card (2.9% + $0.30), charge $515.24. PayPal Standard Card requires $515.92 — $0.68 more. The difference is modest per transaction. Both processors are viable for $500 invoices; choose based on client preference and checkout experience.
Can I ask my client to send $500 via PayPal Friends & Family?
No. PayPal prohibits using Friends & Family for business transactions. Doing so violates PayPal's terms, removes buyer and seller protection, and risks account suspension. Include the fee in your invoice price: charge $515.92 for Standard Card so you receive exactly $500 after fees.
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
See fees side by side and find the cheapest option
Compare →Related Tools
Visit the homepage to calculate fees for other processors.