Compare Stripe, Paddle, Lemon Squeezy, and PayPal fees side by side. Enter your monthly revenue → see exact fees, effective rate, and net revenue.
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True cost comparison — raw fees only, excluding tax handling.
| Processor | Rate | Fixed fee | Tax handling | MoR | $10K MRR fee |
|---|---|---|---|---|---|
| StripeLOWEST RATE | 2.9% | $0.30 | You handle (Stripe Tax extra) | No | ~$350 |
| PayPal | 3.49% | $0.49 | You handle | No | ~$447 |
| Paddle | 5% | $0.50 | Handled (global VAT) | Yes | ~$600 |
| Lemon Squeezy | 5% | $0.50 | Handled (global VAT) | Yes | ~$600 |
A Merchant of Record (MoR) is the legal entity that processes payment and handles all tax obligations globally. Paddle and Lemon Squeezy collect VAT/sales tax in 100+ countries automatically. Stripe requires you to use Stripe Tax ($0.50 per transaction) or handle tax yourself.
Paddle's 5% beats Stripe at MRR above ~$15K when adding Stripe Tax ($0.50/tx) and accounting for international card fees (1.5% extra). Below $15K MRR: Stripe is cheaper. Above $15K MRR with global customers: Paddle or Lemon Squeezy saves tax headaches.
Find your true payment processing cost including hidden fees and tax handling.
A SaaS at $30K MRR with 300 monthly subscriptions and 40% EU customers: Stripe raw fees = $870 + Stripe Tax for EU ($60) + international card fees ($90) = $1,020/month effective. Paddle at 5% + $0.50 = $1,500 + $150 = $1,650/month — but Paddle handles all tax, no surprise compliance issues. At $100K MRR the math shifts: Stripe total ≈ $3,400 vs Paddle ≈ $5,150. Tax peace-of-mind has a price.
How we calculate payment processing fees.
Sources: All processing rates are sourced from each provider's official pricing pages — Stripe's pricing page, PayPal's merchant fees page, Paddle's pricing page, and Lemon Squeezy's pricing page. These are standard, public rates available to any developer without volume negotiation.
What the calculator includes: The base percentage rate and fixed per-transaction fee for standard card transactions. For Stripe, we show the base domestic rate (2.9% + $0.30). International card fees (+1.5%), currency conversion fees (+1%), Stripe Tax ($0.50/tx), and dispute/chargeback fees are not included in the automated calculation but are explained in the tips section.
What the calculator excludes: Stripe Radar fraud protection fees, ACH/bank transfer rates (typically 0.8%), Buy Now Pay Later surcharges (Klarna, Afterpay integrations), and subscription management platform fees (Stripe Billing adds a 0.5–0.8% fee on revenue managed through their platform).
Update cadence: Payment processor fees change infrequently — typically once every 1–2 years. We verify rates quarterly and update immediately when a provider announces a fee change.
At the raw rate level, yes — 2.9% vs 5%. But adding Stripe Tax ($0.50/tx for EU VAT), international card fees (1.5% extra), and chargeback processing costs, the effective break-even is around $12–18K MRR depending on your customer geography. Below that Stripe is cheaper; above that Paddle's all-inclusive pricing is often comparable or better when you value tax compliance and no surprises.
A Merchant of Record (MoR) is the legal entity that processes payment and assumes all tax obligations globally. Paddle and Lemon Squeezy are MoRs — they collect VAT/sales tax in 100+ countries, remit it to local tax authorities, and handle disputes. Stripe is not a MoR: you are the merchant of record, making you responsible for global tax compliance, which is complex and potentially costly for international businesses.
Both are Merchant of Record platforms charging 5% + $0.50. Lemon Squeezy launched in 2021 with a developer-first UX, strong product page builder, and simple API. Paddle has been operating since 2012 with more enterprise features, a larger customer base, and more complex integration options. For indie developers and small SaaS, Lemon Squeezy is often easier to set up. For established companies with volume, Paddle offers more customization.
Stripe is available in 47+ countries for businesses to register in, and accepts payments from customers in 195+ countries. International card payments (non-domestic) incur a 1.5% surcharge. If your business is registered in a country Stripe supports but you sell to customers globally, you'll also need Stripe Tax or a separate VAT registration strategy for EU/UK compliance. Paddle and Lemon Squeezy handle this automatically.
PayPal's standard rate for digital goods is 3.49% + $0.49 per transaction. There's also a 1.50% fee for international transactions. For subscription SaaS, PayPal's recurring billing options are more limited than Stripe. Most SaaS companies use PayPal as a supplementary checkout option (some customers strongly prefer it) rather than their primary processor, because Stripe's developer experience and subscription tooling is significantly better.
Chargebacks (disputed transactions) cost $15–25 per dispute with Stripe and PayPal, regardless of outcome. If your dispute rate exceeds 1% of transactions, Stripe may place your account under review. Paddle and Lemon Squeezy absorb chargeback risk as the Merchant of Record, so disputes don't directly affect your account standing. For products with higher refund rates (digital goods with unclear value propositions), MoR platforms provide meaningful risk protection.