Fees & Payments
Net amount and effective rate
What the recipient keeps and the true cost as a share of the amount.
The Formula
Net = Amount - Fee; Effective = Fee / Amount
What the recipient keeps and the true cost as a share of the amount.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| A | Amount | currency | Transaction amount before the fee. |
| F | Fee | currency | Total PayPal charge. |
What Each Symbol Means
Acurrency
Amount
Transaction amount before the fee.
Fcurrency
Fee
Total PayPal charge.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate paypal fees page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate PayPal Fees, filed under Finance. Every number the guide produces comes from substituting into this one line.