![]() Let’s do some manual calculations to work out the exact amount: The Goods and Services fee is 2.89% plus 49¢ for each domestic transaction. The standard fee for merchants is 3.49% plus 49¢ per domestic non-American Express transaction, while a charity’s transaction fee starts from 1.99% plus 49¢ per transaction. International transactions cost more for merchants and consumers, depending on multiple factors. Any transaction made through American Express might be discounted. Each product charges a different rate, and some have an additional fixed fee per transaction. You are considered a consumer if you buy something online or offline using PayPal.įor merchants, PayPal offers both online and point-of-sale products. Consumers refer to the customers or buyers, while merchants refer to the sellers or service providers. PayPal serves consumers and merchants (business owners) like any other payment processor. You can set your target return to a Profit amount, a Margin percent or a Markup percent.How to calculate PayPal USA transaction fees Selling Price The calculator answer is the item price you should list for your item in order to meet your target return. Additional per transaction payment processing fixed fees can include charges such as the $0.30 fee charged by PayPal or $0.25 charged by Etsy. Transaction Fees Transaction or Payment Processing fees are the percentage (usually 2.2% to 3%) charged on the total transaction including Item Price, Shipping and Tax for processing a credit card payment. If you pay additional selling fees you can add them to these amounts. Additional fixed costs such as an insurance or listing fee per item are also applied here. ![]() This fee is a percentage charged on Item Price and Shipping. Selling Fees This includes the fee of 5%, 10%, 15% or more that the marketplace (Amazon, eBay, Etsy, etc.) charges you once your item is sold. Check the policies of your marketplace provider regarding how they apply sales tax. Charge Sales Tax on Shipping? Whether or not sales tax is charged on shipping varies from state to state. Sales Tax Percentage charged on Item Price. If you offer free or discounted shipping enter $0 or the discounted amount and the net shipping cost, if any, will be calculated into the Selling Price. Shipping Charge The amount the seller charges the buyer for shipping. Shipping Cost The amount the seller has to pay for shipping the product to the buyer. For an Etsy craft product the Item Cost would also include your cost of materials and labor. Item Cost The Cost to acquire the item and might also include variable costs such as your additional production time and packaging rolled into it. Total Cost = Item Cost + Shipping Cost + Selling Cost + Transaction Cost. Cost * (1 + Markup) = Selling Price and therefore, Markup = (Selling Price / Cost) - 1 Cost Expense incurred to produce and distribute the item. That result is then added to your total costs to set your selling price. Markup The percentage applied to Costs incurred to produce and distribute the item. Gross Profit Margin = Gross Profit / Revenue. Margin Gross Profit Margin A percentage expressed as a ratio of gross profit to the revenue. Revenue is amount received from the buyer less the Taxes. Profit Gross Profit The amount of money earned after Cost has been paid. If you are using an ecommerce platform service that charges a monthly fee instead of a per transaction fee you'll need to forecast your sales and how that fee is distributed on a per item cost basis then enter that amount under fixed selling fees. This calculator will be most useful for merchants that have costs associated with a per transaction fee when selling items through an online marketplace such as Etsy, eBay or Amazon and using a credit card processing service like PayPal to process payments. Target profit or return can be set to a profit in dollars, a margin percentage or a markup percentage. Use this price calculator to determine the required selling price of an item in an online marketplace so that you achieve your desired profit.
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