Quick answer
On a $2,500 invoice paid from the US to Europe at a 0.92 exchange rate, Wise keeps €2,289.70, Stripe €2,176.54 and PayPal €2,119.41. PayPal costs €170.29 more than Wise per invoice — €2,043 a year on 12 invoices — mostly through its 3.5% currency-conversion spread.
How the Stripe & PayPal Fee Calculator works, step by step
Enter your invoice amount, the two currencies, the mid-market exchange rate and how many such invoices you send a year. The calculator first works out the true value — invoice amount × mid-market rate — then shows what each payment rail actually delivers after its fees and exchange-rate markup. The gap between the two is the total drag on your invoice.
Stripe charges 2.9% plus 30 cents on a domestic US card payment, plus 1.5% when the card was issued outside the US, giving 4.4% plus 30 cents for an international card. On top of that, Stripe adds a 1% currency-conversion fee when the payment has to be converted into your settlement currency. The calculator applies both layers in sequence.
PayPal charges 2.99% plus 49 cents on a domestic card payment, plus a 1.5% cross-border surcharge, giving 4.49% plus 49 cents for an international commercial transaction. The larger cost is the currency-conversion spread of 3–4%, which PayPal builds into its exchange rate instead of itemizing — the calculator uses 3.5%, the middle of that range.
Wise converts at the mid-market rate with no spread and charges a small variable fee instead — the calculator models 0.43% plus a $0.45 fixed fee for the USD-to-EUR route. Wise's fee varies by currency pair, from 0.23% upward, so check the quote for your own corridor before switching rails on the strength of the comparison.
The result shows each provider's net payout, its total drag as a percentage of the true value, and the annual saving from switching to the cheapest rail. The fixed fees matter most on small invoices: 30 or 49 cents is trivial on $2,500 but 5% of a $10 payment, so the cheapest rail for large invoices is not always the cheapest for small ones. Fees change: Stripe and PayPal have both adjusted their schedules in recent years, so re-check their published fee pages quarterly and treat the calculator's rates as the defaults for its comparison, not a live quote.
The formula
Net payout = (invoice − percentage fee − fixed fee) × mid-market rate × (1 − conversion spread). Total drag = (true value − net payout) ÷ true value, where true value = invoice × mid-market rate.
Worked example — try it on the calculator above
Worked example: $2,500 invoice, USD to EUR, 12 a year
A $2,500 invoice at a 0.92 mid-market rate is truly worth €2,300. Stripe takes 4.4% plus $0.30 ($110.30), then converts the remaining $2,389.70 at a rate 1% below mid-market, paying out €2,176.54 — a 5.37% drag. PayPal takes 4.49% plus $0.49 ($112.74), then converts at a rate 3.5% below mid-market, paying out €2,119.41 — a 7.85% drag. Wise takes 0.43% plus $0.45 ($11.20) and converts at the mid-market rate, paying out €2,289.70 — a 0.45% drag. Over 12 invoices a year, Wise saves €1,357.89 against Stripe and €2,043.44 against PayPal.
Frequently Asked Questions
What is an FX spread?
An FX spread is the markup a payment provider builds into its exchange rate. If the mid-market rate is $1 = €0.92, a provider with a 3.5% spread converts at about €0.89, keeping the difference. It never appears as a line item, which is why PayPal's true cost is far higher than its headline 4.49% fee suggests.
How do PayPal cross-border fees work?
PayPal stacks three charges on an international commercial payment: the 2.99% plus $0.49 domestic card fee, a 1.5% cross-border surcharge (4.49% plus $0.49 in total), and a currency-conversion spread of 3–4% when the money changes currency. On a converted payment the combined cost runs to roughly 8% of the invoice.
How can freelancers avoid FX fees?
Use a multi-currency account such as Wise or Payoneer: give the client local bank details in their currency, receive the funds without a cross-border fee, then convert at the mid-market rate for a small transparent fee. On the calculator's defaults, Wise costs 0.45% of the invoice against PayPal's 7.85% — a €2,043 annual difference on 12 invoices.
Is Stripe cheaper than PayPal for international clients?
Generally, yes. Stripe charges 4.4% plus 30 cents for an international card plus a 1% conversion fee, while PayPal charges 4.49% plus 49 cents plus a 3–4% conversion spread. On the calculator's $2,500 default invoice, Stripe pays out €2,176.54 against PayPal's €2,119.41 — €57.13 more per invoice.
Estimates, not advice. This calculator provides educational estimates based on the inputs you enter and the assumptions shown on this page. It is not financial, tax or investment advice, and it cannot see your full situation. Verify important figures against official sources, and consider a qualified professional for decisions about your own money. See our Disclaimer and Methodology.