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PayPal vs Stripe Calculator — Which Processor Costs Less?

Compare PayPal and Stripe processing costs at your ticket size and volume — see which is cheaper for your business and by how much.

Stripe cost / transaction
$1.86
PayPal cost / transaction
$2.35
Stripe monthly
$186.25
PayPal monthly
$234.75
Stripe saves you
$48.50
per month on $5,000 volume — $582.00/yr

Last reviewed 2026-10-18. Rates change — verify against the official sources linked below before relying on these figures.

What this is based on

  • Stripe online: 2.9% + $0.30. PayPal online checkout: 3.49% + $0.49. International cards add ~1.5% on both.
  • Micropayment pricing (PayPal 4.99% + $0.09, Stripe 5% + $0.05) isn't modeled — it wins under ~$12 tickets on PayPal.
  • Chargebacks: Stripe $15 refundable, PayPal $20 non-refundable. Currency conversion adds ~1% (Stripe) to ~4% (PayPal) when it applies.

The standard-rate gap is real but not dramatic

At headline rates — Stripe 2.9% + $0.30 vs PayPal 3.49% + $0.49 — Stripe wins on essentially every ticket size. On a $50 transaction it's $1.75 vs $2.24; at 100 transactions/month that's ~$590 a year. The bigger the ticket, the wider the percentage gap bites.

But PayPal isn't in the checkout for its rate — it's there because a meaningful share of buyers only convert when they see the PayPal button. The question is rarely either/or: most stores run Stripe as primary processor with PayPal as an additional option, because a lost sale costs 100%, not 0.6%.

Where each one actually wins

Stripe wins on: raw rates, developer tooling, subscriptions, international payouts, and transparent fee handling (fee refunded disputes). PayPal wins on: checkout conversion with PayPal-loyal buyers, built-in buyer trust for unknown brands, micropayments under ~$12 (special rate), and Venmo reach.

The honest answer for most businesses: primary processing on Stripe, PayPal offered as a wallet. Offering both typically lifts conversion more than the extra 0.6% on PayPal-routed transactions costs.

The fees the rate card doesn't show

PayPal's real cost hides in currency conversion (~4% markup vs Stripe's ~1%) and hold policies — new or 'risky' merchants routinely see 21-day holds and rolling reserves. Stripe's hidden cost is integration effort — you need a checkout, while PayPal works as a standalone button. Dispute fees differ too: Stripe $15 refunded if you win, PayPal ~$20 kept regardless.

Frequently asked questions

Is Stripe or PayPal cheaper?
Stripe, on standard rates: 2.9% + $0.30 vs PayPal's 3.49% + $0.49 — roughly $0.49 cheaper on a $50 sale, before currency conversion where Stripe is also cheaper (~1% vs ~4% markup).
Should I offer both Stripe and PayPal?
Usually yes — PayPal measurably lifts conversion for buyers who only trust it. The extra ~0.6% cost on those transactions is cheaper than the lost sales.
Which is better for international payments?
Stripe — it charges ~1% on currency conversion vs PayPal's ~4% markup, and supports local payment methods PayPal lacks.
Which is better for small transactions?
PayPal micropayments (4.99% + $0.09) wins under ~$12 average ticket — compare against Stripe's standard rate on your exact numbers.

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