How much is PayPal conversion rate
PayPal's conversion rate is the mid-market exchange rate plus a currency conversion markup of roughly 3% to 4%, so PayPal does not use one fixed rate.
The markup is built into the exchange rate PayPal quotes, which means it does not appear as a separate line item on a PayPal receipt.
- Personal transfers and shopping: PayPal typically adds a 4.00% markup when someone pays an overseas seller or sends money to friends and family in another currency.
- Merchant payments and invoices: When a business receives foreign currency and withdraws it to a local bank account, the markup is typically 3.00% to 4.5%.
As an illustration, if the mid-market rate were 1 USD = 1.00 EUR and PayPal applied a 4% markup, the effective rate would be 1 USD = 0.96 EUR, and converting $1,000 would lose roughly $40 to the spread alone.
For businesses and freelancers receiving cross-border payments, PayPal pricing layers this conversion markup on top of an international transaction fee of 2.99% to 4.4%. Together, the total cost of a payment can reach about 7% to 9%.
PayPal's currency calculator shows the rate that will apply, with the markup already included:
- Open Wallet: Log in to the PayPal account and go to the Wallet section.
- Select Currency Calculator: Click the Currency Calculator option inside Wallet.
- Choose currencies: Pick the currencies involved to view the live rate, including PayPal's markup.