Shopify vs PayPal Invoicing – Which One Costs More?

Picking an invoicing method is mostly about fees. Here’s a clear breakdown of how costs typically stack up, plus a plug-and-play calculator you can drop into your site to model your own numbers.

Adjust the default rates to your region. It estimates monthly fee totals and shows an effective fee % and a quick winner based on your inputs.

💡 What counts as “invoicing” on each platform

• Shopify: You create a draft order and Send invoice (customers pay by card via Shopify Payments or a third-party gateway). Fees follow your plan’s card rate, plus any extra % if you’re not using Shopify Payments.
• PayPal Invoicing: You send a PayPal invoice; the buyer pays via their PayPal balance/card. Fees are usually a % of the charged amount plus a fixed fee. Rates vary by country and account type.

Rates change by region and plan. Use the calculator to set your exact local rates.

📊 Fee components to watch

• Percent fee (%) on the total charged (item price + shipping)
• Fixed fee per transaction (e.g., $0.30 or $0.49)
• Monthly platform fee (Shopify plan), if applicable
• Extra % if you use a third-party gateway on Shopify instead of Shopify Payments

📈 When each one can be cheaper

• PayPal Invoicing often wins for very low volumes or if most customers already prefer PayPal, because there’s no monthly platform fee.
• Shopify Invoicing can be cheaper as you scale or if your plan’s card rate is lower than PayPal’s, even after the monthly plan cost. It’s also convenient if your store already runs on Shopify.

📦 Takeaways

• If you already pay for a Shopify plan and qualify for a lower card rate, Shopify invoicing can beat PayPal at moderate volumes or higher average invoice amounts.
• If you invoice only occasionally or prefer not to carry a monthly platform cost, PayPal invoicing may be cheaper.
• Use the calculator with your actual regional rates to find your break-even point.