PayPal vs Paddle — which takes less?
| PayPal | Paddle | |
|---|---|---|
| Headline rate | 3.49% + $0.49 per Goods & Services transaction | 5% + $0.50 per transaction, all-inclusive MoR |
| $100 → fees | $3.98 | $5.50 |
| $100 → net | $96.02 | $94.50 |
Side-by-side quick reference
| Amount | PayPal fees | PayPal net | Paddle fees | Paddle net | Difference | PayPal charge→net | Paddle charge→net |
|---|---|---|---|---|---|---|---|
| $10.00 | $0.84 | $9.16 | $1.00 | $9.00 | paypal +$0.16 | $10.87 | $11.06 |
| $25.00 | $1.36 | $23.64 | $1.75 | $23.25 | paypal +$0.39 | $26.42 | $26.85 |
| $50.00 | $2.24 | $47.76 | $3.00 | $47.00 | paypal +$0.76 | $52.32 | $53.16 |
| $100.00 | $3.98 | $96.02 | $5.50 | $94.50 | paypal +$1.52 | $104.13 | $105.79 |
| $250.00 | $9.22 | $240.78 | $13.00 | $237.00 | paypal +$3.78 | $259.55 | $263.69 |
| $500.00 | $17.94 | $482.06 | $25.50 | $474.50 | paypal +$7.56 | $518.59 | $526.85 |
| $1,000.00 | $35.39 | $964.61 | $50.50 | $949.50 | paypal +$15.11 | $1,036.67 | $1,053.16 |
PayPal formula
payment processing 3.49% + $0.49
3.49% + $0.49 per Goods & Services transaction — verified 2026-11-10
Paddle formula
payment processing 5.00% + $0.50
5% + $0.50 per transaction, all-inclusive MoR — 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).
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: PayPal or Paddle?
PayPal takes $3.98 (net $96.02); Paddle takes $5.50 (net $94.50). PayPal wins by $1.52 at $100.
Which is better for international sellers, PayPal or Paddle?
PayPal: 3.49% + $0.49 per Goods & Services transaction. 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 PayPal and Paddle?
At $100, PayPal takes 4.0% vs Paddle at 5.5% — a 1.5 point gap before modifiers.