PayPal Refund Calculator
For US commercial and invoice refunds, the original processing fee is not returned. Calculate retained fees and full or partial refund outcomes; disputes are a separate scenario.
Currency for all amounts: USD
For US commercial and invoicing payments, PayPal keeps the entire original fee on full and partial refunds. There is no additional fee to issue the refund. Other presets are simulations.
Full Refund
Original fee
Full refund amount
Final merchant loss
Retained processing fee
Merchant balance = original payment − refund − retained fee. For a full refund, the cash loss is the retained fee; the returned principal is not counted again as a loss.
Original fee is estimated from the payment type. Remaining net revenue is not profit. Goods, shipping, tax, currency conversion and disputes are not included.
Official US refund policy · Verified: 2026-10-10
Official rule: PayPal Checkout (paypal-US-paypal_checkout-USD, v1) | Verified 2026-10-09
Modeled rule: refund-policy-keep_all_fee (refund-policy-keep_all_fee, vsimulation-v1)
Does PayPal return the processing fee when I refund $100?
No. For a US domestic $100 PayPal Checkout payment at 3.49% + $0.49, the original fee is $3.98. On a full refund, the buyer gets $100 back, but that $3.98 processing cost remains with the merchant. PayPal does not charge an additional fee to issue this refund.
US commercial-payment refund example in USD, not a dispute or chargeback outcome. Excludes conversion, inventory, shipping and other business costs. Other refund-policy presets are simulations.
Source: PayPal US fees · Source updated · Rate last verified
Full refunds, partial refunds and disputes: worked examples
These examples start with a US domestic USD Checkout payment of $100 and its $3.98 processing fee. For full and partial commercial or invoice refunds, PayPal retains the original fee and does not add a fee just for issuing the refund. The retained amount is not prorated to the refunded amount.
| Scenario and inputs | Calculation | Result |
|---|---|---|
| Full Refund; original $100 | $100 - $100 - $3.98 | -$3.98 merchant balance; $3.98 cash loss |
| Partial Refund; original $100, refund $40 | $100 - $40 - $3.98 | $56.02 remaining net revenue; $3.98 fee retained |
Remaining revenue is not profit. Product costs, shipping, tax and FX are excluded. A full refund returns the $100 principal once; the cash loss is the retained fee, not $100 plus that fee.
Dispute outcomes are a separate calculation
For each case below, the original and disputed amounts are $100, the entered retained original fee is $3.98, and other costs are $0. These are hypothetical case inputs, not actual claims. The $15 estimate is not a universal PayPal fee. In a real case, use the net fee retained after any statement credits rather than assuming the refund policy applies.
| Case inputs | Reconciliation | Cash loss |
|---|---|---|
| Confirmed reversal, hypothetical $15 case fee | $100 - $100 - $3.98 - $15 = -$18.98 | $18.98 (estimate) |
| No reversal, confirmed fee waiver | $100 - $0 - $3.98 - $0 = $96.02 | $0.00 |
| Pending hold, unknown case fee | Funds outcome and case fee are still unknown | Undetermined, not $0 |
Card chargebacks and PayPal disputes can follow different fee rules. A favorable outcome does not by itself prove every fee is waived. Do not subtract both a refund and the same reversed principal again.
Refunds, disputes and losses
Refund
The merchant returns all or part of a payment. US commercial and invoicing refunds do not return the original processing fee.
Dispute or chargeback
The buyer challenges a payment. The funds outcome and applicable fee are confirmed separately, based on the case and payment product.
Cash loss
The shortfall after offsetting the received payment, returned or reversed funds and included costs. Temporarily held funds are not a final loss.
Related PayPal fee pages
Does PayPal keep fees on refunds?
Yes. For US commercial and invoicing payments, PayPal retains the entire original transaction fee on full and partial refunds, with no additional fee to issue the refund. This is the calculator default for the US market; other policy options are simulations, not verified rules for other markets.