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PayPal Fees in Your Ecommerce Profit Model (Per Order)
Map PayPal processing into per-order profit: blended rates, fixed fees, and how to avoid double-counting when you already use net receipt.
Published: 2026-04-24
Start from how you recognize revenue
If you enter gross checkout totals, allocate PayPal fees into commission or fixed amounts. If you enter net receipt after fees, keep commission at zero to avoid double-counting.
Blended vs segmented modeling
International cards and micropayments change effective rates. When mix shifts, update your blended percentage instead of carrying last quarter's average forever.
- Domestic vs cross-border: run two calculator passes if mix is material
- Refunds and disputes: add a reserve in other costs when stable enough
Link to profit decisions
After fees, compare gross margin with net profit margin. If PayPal compresses net margin at your median order value, revisit free shipping thresholds and AOV builders before scaling ads.