Stop Losing Money to Fees: The Ultimate Payment Calculator
Every freelancer and business owner knows the pain: You send an invoice for $100.00, but when the money hits your bank account, you only see $96.80. Where did the rest go? Payment processors like PayPal, Stripe, and Square charge fees for the convenience of accepting credit cards. While 3% might sound small, it adds up to thousands of dollars a year. Our Advanced Payment Fee Calculator helps you audit these costs and—more importantly—calculate exactly how much to charge your clients to cover them.
The "Reverse Calculation" Feature
This is the most powerful tool for freelancers. If you need to receive exactly $500 in your pocket to pay your rent, you cannot invoice for $500. You must "gross up" the invoice to account for the fee deduction.
- Standard Mode: "If I charge $100, I will receive $96.80."
- Reverse Mode (I Need Net): "To receive $100 in my pocket, I must invoice the client $103.30."
Comparing the Big Three: Stripe vs. PayPal vs. Square
Fees vary wildly depending on how you accept the payment.
- Stripe & PayPal (Online): The industry standard is 2.9% + $0.30 per transaction. This applies to invoices sent via email or checkout buttons on your website.
- Square (In-Person): If you physically swipe or dip a card using a POS terminal, the risk of fraud is lower. Therefore, the fee is cheaper: typically 2.6% + $0.10.
- Micropayments: If you sell cheap digital items (e.g., $5.00), the fixed $0.30 fee eats up your profit. PayPal offers a "Micropayments" rate (usually 5% + $0.05) which is cheaper for transactions under $12.
The Hidden Cost: International Fees
Selling globally? Beware the "Cross-Border Fee." If your US-based Stripe account accepts a payment from a European credit card, Stripe adds an additional 1% to 1.5% fee on top of the standard rate. Plus, currency conversion fees may apply. Use the "International Transaction" toggle in our tool to see the true cost of global business.
Frequently Asked Questions
Can I legally ask clients to pay the fee?
In most jurisdictions and for B2B transactions, yes, you can add a "Processing Fee" or simply raise your prices to cover it. However, some US states have specific laws regarding credit card surcharges for retail consumers. It is often safer (and more professional) to simply build the 3% into your base price rather than adding it as a line item.
Do I get the fee back if I refund a customer?
Generally, no. In 2019/2020, both PayPal and Stripe updated their policies. If you refund a client $100, the payment processor keeps the original $3.20 fee. You (the merchant) have to pay that cost out of your own pocket.
What is the formula for the reverse calculation?
It is not as simple as adding 2.9%. The math is: Invoice Amount = (Goal Amount + Fixed Fee) / (1 - Percentage Fee).