If you’re doing monetary transactions through PayPal, you should be aware that PayPal takes a cut for their services. This is how you would calculate the actual amount to charge someone who owes you money.<\/p>\n
As of this posting, PayPal pockets 2.9% + USD$0.30 off from the amount you are requesting. Therefore, if you are requesting $50 from someone, you don’t request $50. You need to account for the amount that PayPal will pocket, so you need to request in excess of $50. Check this out:<\/p>\n
Let x = total amount to request from payer (assuming the payer is willing to pay PayPal’s processing fees)
\nLet y = amount you want to receive from payer<\/p>\n
y = x – (x * 0.029) – 0.30<\/p>\n
So plug in your variables:<\/p>\n
50 = x – (x * 0.029) – 0.30<\/p>\n
50 + 0.30 = x – (x * 0.029)<\/p>\n
50.30 = x – 0.029x<\/p>\n
50.30 = x * (1 – 0.029)<\/p>\n
50.30 \/ (1 – 0.029) = x<\/p>\n
x = 50.30 \/ 0.971<\/p>\n
x = 51.80226… = $51.80<\/strong><\/p><\/blockquote>\n
So you need to request $51.80 from the payer. You can double check how the amount requested will be processed by PayPal. Check it out:<\/p>\n
x = $51.80<\/p>\n
Let z = amount you will pocket<\/p>\n
Remember<\/p>\n
y = x – (x * 0.029) – 0.30<\/p>\n
We use the same formula before, substituting y with z<\/p>\n
\nz = x – (x * 0.029) – 0.30<\/p>\n
z = 51.80 – (51.80 * 0.029) – 0.30<\/p>\n
(51.80 * 0.029) = 1.5022 = 1.50<\/p>\n
z = 51.80 – 1.50 – 0.30<\/p>\n
51.80 – 1.50 = 50.30<\/p>\n
z = 50.30 – 0.30<\/p>\n
50.30 – 0.30 = 50<\/p>\n
z = $50<\/p>\n<\/blockquote>\n
So it’s important you calculate the requested fee correctly so you get paid what you’re owed! Good luck with all your PayPal transactions!<\/p>\n
Here are some online calculators to make it easier on yourself:
\nhttp:\/\/www.rememberingrolbe.com\/paypal.htm
\nhttp:\/\/ppfeecalc.com\/
\nhttp:\/\/www.paypalfeescalculator.com\/<\/p>\nAnd PayPal’s documentation on processing fees:
\nhttps:\/\/www.paypal.com\/webapps\/helpcenter\/article\/?articleID=94008&m=SRE
\nhttps:\/\/www.paypal.com\/webapps\/mpp\/paypal-fees<\/p>\nYou can also check out my how to calculate Fiverr fees article<\/a> too.<\/p>\n