It’s Not About What You Sell. It’s About What You Keep.
Square Fee Calculator
Every time you swipe a card, send an invoice, or take a payment over the phone, a percentage of your hard-earned revenue disappears. For small business owners and freelancers, these “small” percentages add up to thousands of dollars a year.
Our Square Fee Calculator is more than just a math tool—it is your margin protector. Before you set your prices or send that next invoice, use this tool to determine exactly how much Square will deduct and, more importantly, the exact net amount that will hit your bank account.
How the Calculator Works
We have simplified the complex fee tables into a single, easy-to-use interface.
- Enter Transaction Amount: The total price you are charging the customer.
- Select Payment Method: Are you swiping a card, sending an online link, or typing numbers in manually? (This step is crucial—the fees change drastically!)
- Get Your Numbers: Instantly see the Total Fee deducted and your Net Payout.
The Real Cost of Using Square (Detailed Breakdown)
Square’s pricing is transparent, but it is not “one size fits all.” The amount you pay depends entirely on the risk level of the transaction. Here is how the costs break down for the most common payment types.
1. The “Standard” Rate (Card Present)
- Fee: 2.6% + $0.10
- Scenario: You are a coffee shop, retail store, or food truck. You physically take the customer’s card and dip (chip), tap (contactless), or swipe it using a Square Reader or Terminal.
- Why it’s the cheapest: When the card and customer are present, fraud risk is low, so Square charges you less.
2. The “Digital” Rate (Online & Invoices)
- Fee: 2.9% + $0.30
- Scenario: You sell products through a Square Online store, use a “Checkout Link” sent via text, or use the “Invoices Plus” plan.
- The Freelancer Note: If you are on the Free Square Invoices plan, the fee is slightly higher at 3.3% + $0.30. Upgrading to the paid plan lowers this rate, which can save high-volume freelancers significant money.
3. The “Manual” Rate (Virtual Terminal)
- Fee: 3.5% + $0.15
- Scenario: A customer calls you with an order, and you type their credit card numbers into the app manually.
- Warning: This is the most expensive way to accept payments. Because the card isn’t verified by a chip or pin, the risk of chargebacks is high, and Square charges a premium for it. Avoid this when possible—send a digital invoice instead to save nearly 0.6% per transaction!
Real-World Profit Examples
Seeing the percentages is one thing; seeing the dollars is another. Here is what happens to a $100.00 sale across different methods:
| Payment Method | You Charge | Square Takes | You Keep |
| In-Person (Swipe/Dip) | $100.00 | $2.70 | $97.30 |
| Online Store | $100.00 | $3.20 | $96.80 |
| Standard Invoice | $100.00 | $3.60 | $96.40 |
| Manual Keyed-In | $100.00 | $3.65 | $96.35 |
As you can see, manually keying in a card costs you nearly $1.00 more per $100 sale than swiping it. Over a year, that difference is massive.
Hidden Costs & “Gotchas” to Watch
While Square has no monthly fees for its basic app, there are other costs that can catch new merchants off guard.
- The “Instant Transfer” Fee:Square transfers money to your bank account in 1-2 business days for free. If you need the cash right now, they charge a 1.5% fee to push the funds to your debit card instantly.
- The Refund Policy:Crucial Note: If you refund a customer, Square does not return the processing fees to you. If you process a $100 sale, you pay a ~$3 fee. If you refund that $100 later, that $3 is gone forever.
- Hardware Costs:The app is free, but you need equipment. The basic magstripe reader is often free, but the secure Contactless & Chip Reader (required for Apple Pay and tap cards) typically costs around $49.
Common Questions About Square Fees
Is Square cheaper than PayPal?
For retail businesses, generally yes. Square’s standard in-person rate (2.6%) is competitive and their point-of-sale software is superior for physical stores. For online invoicing, PayPal and Square are very similar, though Square’s invoicing features are often considered more professional for freelancers.
Can I pass the Square fee to my customers?
This is called “surcharging.” While legal in many places, it is complex. You cannot surcharge on debit cards, and you must follow strict signage rules. Instead of adding a “surcharge,” many businesses simply raise their base prices slightly to cover the average processing cost.
Does Square charge different fees for Amex?
No. This is one of Square’s biggest advantages. Whether your customer uses a standard debit card or a premium American Express Platinum rewards card, you pay the same flat rate.
How do I lower my Square fees?
Standard accounts have fixed rates. However, if your business processes more than $250,000 per year, you can contact Square Sales to negotiate a custom rate. For smaller businesses, the best way to lower fees is to avoid manual entry and use card readers whenever possible.