Stripe & PayPal Fee Calculator with 1099-K Threshold
Calculate credit card transaction fees, reverse invoice amounts, and track IRS 1099-K reporting thresholds.
Stripe, PayPal, Square and Shopify fees: calculation and 1099-K
A US payment gateway fee is amount × rate + fixed fee. With Stripe US (2.9% + $0.30), a $250 sale costs $7.55 and you receive $242.45. The other way round, to net $250 you must charge (250 + 0.30) ÷ (1 − 0.029) = $257.78.
Formulas
- Fee = amount charged × rate + fixed fee; net = amount − fee.
- Amount to charge for a target net = (net + fixed fee) ÷ (1 − rate).
Rates used (US accounts, domestic cards)
| Gateway | Rate | Fee on $250 |
|---|---|---|
| Stripe US | 2.9% + $0.30 | $7.55 |
| PayPal US | 2.99% + $0.49 | $7.96 |
| Square Online API (or Plus/Premium plans) | 2.9% + $0.30 | $7.55 |
| Square in person | 2.6% + $0.15 | $6.65 |
| Shopify Payments Basic | 2.9% + $0.30 | $7.55 |
The effective rate falls as the basket grows: 3.50% on a $50 Stripe sale, 3.02% on $250. The tool ignores surcharges for foreign cards, currency conversion and manual entry.
1099-K threshold
The warning follows the rule for third-party payment platforms (a PayPal account receiving payments, for example), retroactively restored by the One Big Beautiful Bill Act of July 2025: more than $20,000 in sales and more than 200 transactions in the year, both at once. Enter annual totals. Payment card transactions are reported with no minimum, which the warning does not cover, and state-specific thresholds are not checked. This is an estimate and does not replace advice from a US tax professional.
Sources and dates: Stripe US 2.9% + 30¢ and Shopify Basic US 2.9% + 30¢ (taken from the official sites via search; the US pricing pages do not display from France); PayPal US merchant fees updated 1 October 2026 (PayPal Checkout 3.49% + $0.49, standard card payments 2.99% + $0.49, goods and services between accounts 2.99%); Square help centre, Free plan (in person 2.6% + 15¢ since 25 February 2025, online store and invoices 3.3% + 30¢, online API 2.9% + 30¢); IRS news release IR-2025-107 of 23 October 2025 and Form 1099-K general FAQ updated 3 April 2026 (no threshold for payment card transactions) (checked 14/10/2026).
Frequently Asked Questions
How much does Stripe charge per payment in the US?
Stripe's standard US rate is 2.9% + $0.30 per successful charge on a US card. On $100 the fee is $3.20. International cards and currency conversion carry surcharges that the tool does not include.
How do I work out what to charge to receive an exact net amount?
Add the fixed fee to the net you want, then divide by (1 − rate). To net $250 through Stripe: (250 + 0.30) ÷ 0.971 = $257.78. Simply adding 2.9% to the net would give $257.25, which nets only $249.49.
At what amount do you get a Form 1099-K?
For third-party payment platforms, the threshold is back to more than $20,000 and more than 200 transactions in the year, retroactively (One Big Beautiful Bill Act of July 2025, IRS news release IR-2025-107, 23 October 2025). Payment card transactions are reported with no minimum. The tool applies this $20,000 and 200-transaction threshold; income is taxable even without a form.
PayPal or Stripe: which is cheaper?
On a $250 sale, Stripe US takes $7.55 and PayPal US $7.96 at the standard card rate (2.99% + $0.49). With the PayPal Checkout button, charged at 3.49% + $0.49, the fee rises to $9.22.
Is this tool really free?
Yes, all tools on Kristools are 100% free and accessible without registration.
Is my data protected?
Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.