PayPal vs Gumroad — which takes less?
| PayPal | Gumroad | |
|---|---|---|
| Headline rate | 3.49% + $0.49 per Goods & Services transaction | 10% + $0.50 platform fee + 2.9% + $0.30 processing |
| $100 → fees | $3.98 | $13.70 |
| $100 → net | $96.02 | $86.30 |
Side-by-side quick reference
| Amount | PayPal fees | PayPal net | Gumroad fees | Gumroad net | Difference | PayPal charge→net | Gumroad charge→net |
|---|---|---|---|---|---|---|---|
| $10.00 | $0.84 | $9.16 | $2.09 | $7.91 | paypal +$1.25 | $10.87 | $12.40 |
| $25.00 | $1.36 | $23.64 | $4.03 | $20.97 | paypal +$2.67 | $26.42 | $29.63 |
| $50.00 | $2.24 | $47.76 | $7.25 | $42.75 | paypal +$5.01 | $52.32 | $58.33 |
| $100.00 | $3.98 | $96.02 | $13.70 | $86.30 | paypal +$9.72 | $104.13 | $115.73 |
| $250.00 | $9.22 | $240.78 | $33.05 | $216.95 | paypal +$23.83 | $259.55 | $287.95 |
| $500.00 | $17.94 | $482.06 | $65.30 | $434.70 | paypal +$47.36 | $518.59 | $574.98 |
| $1,000.00 | $35.39 | $964.61 | $129.80 | $870.20 | paypal +$94.41 | $1,036.67 | $1,149.03 |
PayPal formula
payment processing 3.49% + $0.49
3.49% + $0.49 per Goods & Services transaction — verified 2026-11-10
Gumroad formula
10% + $0.50 platform fee + 2.9% + $0.30 processing; payment processing 2.90% + $0.30
10% + $0.50 platform fee + 2.9% + $0.30 processing — verified 2026-11-10
PayPal fee formula & hidden costs
payment processing 3.49% + $0.49
Worked example: $100.00 gross → $3.98 fees → $96.02 net. Reverse gross-up: charge = (target + fixed) / (1 − rate) → to net $100.00 charge $104.13.
Hidden fees to watch
- Cross-border commercial payments add +1.5% on top of the domestic rate.
- PayPal currency conversion applies a 3-4% markup over the wholesale exchange rate.
- On refunds PayPal returns the percentage portion but keeps the $0.49 fixed fee.
- Chargeback fees run $8-$20 per dispute on top of losing the sale.
- Instant transfers to a bank or card cost 1.75% (min $0.25, max $25).
Gumroad fee formula & hidden costs
10% + $0.50 platform fee + 2.9% + $0.30 processing; payment processing 2.90% + $0.30
Worked example: $100.00 gross → $13.70 fees → $86.30 net. Reverse gross-up: charge = (target + fixed) / (1 − rate) → to net $100.00 charge $115.73.
Hidden fees to watch
- The 10% + $0.50 platform fee sits ON TOP of 2.9% + $0.30 card processing — 12.9% + $0.80 all-in.
- Discover marketplace sales cost a flat 30% total.
- On small products the $0.80 fixed stack hurts: a $5 download loses $1.45 (29%).
- Gumroad keeps processing fees on refunds.
Frequently asked questions
Which takes less on a $100 sale: PayPal or Gumroad?
PayPal takes $3.98 (net $96.02); Gumroad takes $13.70 (net $86.30). PayPal wins by $9.72 at $100.
Which is better for international sellers, PayPal or Gumroad?
PayPal: 3.49% + $0.49 per Goods & Services transaction. Gumroad: 10% + $0.50 platform fee + 2.9% + $0.30 processing. Check the regional variants above — rates change materially by country.
What is the effective take rate difference between PayPal and Gumroad?
At $100, PayPal takes 4.0% vs Gumroad at 13.7% — a 9.7 point gap before modifiers.