Lemon Squeezy vs Paddle — which takes less?
| Lemon Squeezy | Paddle | |
|---|---|---|
| Headline rate | 5% + $0.50 per transaction (merchant of record) | 5% + $0.50 per transaction, all-inclusive MoR |
| $100 → fees | $5.50 | $5.50 |
| $100 → net | $94.50 | $94.50 |
SaaS billing vs Merchant-of-Record break-even
| Provider | Monthly | Annual | Eff. rate | vs cheapest |
|---|---|---|---|---|
| Stripe (+ Billing & Tax)CHEAPEST | $515.00 | $6,180.00 | 5.15% | — |
| Polar.sh | $575.00 | $6,900.00 | 5.75% | +$60.00/mo |
| Paddle | $600.00 | $7,200.00 | 6.00% | +$85.00/mo |
| Lemon Squeezy | $710.00 | $8,520.00 | 7.10% | +$195.00/mo |
| Gumroad | $1,450.00 | $17,400.00 | 14.50% | +$935.00/mo |
Side-by-side quick reference
| Amount | Lemon Squeezy fees | Lemon Squeezy net | Paddle fees | Paddle net | Difference | Lemon Squeezy charge→net | Paddle charge→net |
|---|---|---|---|---|---|---|---|
| $10.00 | $1.00 | $9.00 | $1.00 | $9.00 | tie | $11.06 | $11.06 |
| $25.00 | $1.75 | $23.25 | $1.75 | $23.25 | tie | $26.85 | $26.85 |
| $50.00 | $3.00 | $47.00 | $3.00 | $47.00 | tie | $53.16 | $53.16 |
| $100.00 | $5.50 | $94.50 | $5.50 | $94.50 | tie | $105.79 | $105.79 |
| $250.00 | $13.00 | $237.00 | $13.00 | $237.00 | tie | $263.69 | $263.69 |
| $500.00 | $25.50 | $474.50 | $25.50 | $474.50 | tie | $526.85 | $526.85 |
| $1,000.00 | $50.50 | $949.50 | $50.50 | $949.50 | tie | $1,053.16 | $1,053.16 |
Lemon Squeezy formula
payment processing 5.00% + $0.50
5% + $0.50 per transaction (merchant of record) — verified 2026-11-10
Paddle formula
payment processing 5.00% + $0.50
5% + $0.50 per transaction, all-inclusive MoR — verified 2026-11-10
Lemon Squeezy fee formula & hidden costs
payment processing 5.00% + $0.50
Worked example: $100.00 gross → $5.50 fees → $94.50 net. Reverse gross-up: charge = (target + fixed) / (1 − rate) → to net $100.00 charge $105.79.
Hidden fees to watch
- International cards add +1.5% and PayPal checkouts add another +1.5%.
- Subscription renewals cost +0.5% per recurring charge.
- PayPal payouts carry an extra 1.5% payout surcharge.
- Chargebacks cost ~$15 each plus the lost sale.
Paddle fee formula & hidden costs
payment processing 5.00% + $0.50
Worked example: $100.00 gross → $5.50 fees → $94.50 net. Reverse gross-up: charge = (target + fixed) / (1 − rate) → to net $100.00 charge $105.79.
Hidden fees to watch
- The 5% is all-inclusive — no intl, PayPal or subscription surcharges — but volume discounts require negotiating.
- Chargebacks and refunds still cost you the lost revenue.
- Payout schedules and holding periods can pinch cash flow early on.
Frequently asked questions
Which takes less on a $100 sale: Lemon Squeezy or Paddle?
Lemon Squeezy takes $5.50 (net $94.50); Paddle takes $5.50 (net $94.50). Lemon Squeezy wins by $0.00 at $100.
Which is better for international sellers, Lemon Squeezy or Paddle?
Lemon Squeezy: 5% + $0.50 per transaction (merchant of record). Paddle: 5% + $0.50 per transaction, all-inclusive MoR. Check the regional variants above — rates change materially by country.
What is the effective take rate difference between Lemon Squeezy and Paddle?
At $100, Lemon Squeezy takes 5.5% vs Paddle at 5.5% — a 0.0 point gap before modifiers.