Payment fees on $1–5 subscriptions: Stripe, Paddle, Polar and more
Updated 2026-10-30 · 7 min read
On a $1–5 subscription, payment fees matter more than almost anything else on your pricing page. This guide compares the published fees of Stripe, Paddle, Lemon Squeezy, Polar, Dodo Payments and Razorpay for small subscriptions. It shows what you keep from a $1, $2, $3 and $5 monthly charge and from a $19 pay-once purchase.
All numbers were checked on each provider's official pricing page as of October 2026. Fees change. Check the linked pages before you choose, and treat anything marked "not verified" with care.
The two kinds of provider
Payment processors (Stripe, Razorpay) move the money. You are the seller. You are responsible for registering for, collecting and filing sales tax, VAT and GST wherever you owe it.
Merchants of record (Paddle, Lemon Squeezy, Polar, Dodo Payments, and Stripe's Managed Payments) resell your product. Legally, they are the seller. They calculate, collect and file sales tax and VAT in the countries they cover. They charge more per transaction for this.
For a solo maker selling worldwide, a merchant of record often saves more in tax paperwork than it costs in fees. If you sell mostly in one country, a processor is usually cheaper.
Published fees, October 2026
| Provider | Base fee per transaction | Common surcharges | Merchant of record |
|---|---|---|---|
| Stripe (US) | 2.9% + $0.30 | +1.5% international card, +1% currency conversion, +0.7% Billing for subscriptions | No |
| Stripe Managed Payments | Stripe fees + 3.5% | Same as Stripe | Yes |
| Paddle | 5% + $0.50 | None published | Yes |
| Lemon Squeezy | 5% + $0.50 | +1.5% international, +1.5% PayPal, +0.5% subscriptions | Yes |
| Polar (Starter) | 5% + $0.50 | +1.5% international card | Yes |
| Dodo Payments | 4% + $0.40 (US cards) | +1.5% international, +0.5% subscriptions, +3% PayPal | Yes |
| Razorpay (India) | 2%, no fixed fee | Up to 3% international cards, +0.9% subscriptions, 18% GST on fees | No |
Stripe
Stripe's US card rate is 2.9% + $0.30. Subscriptions also pay 0.7% of billing volume for Stripe Billing on pay-as-you-go. International cards add 1.5%, and currency conversion adds 1%.
Stripe is not a merchant of record by default. Stripe Tax calculates and collects tax, but does not file it for you. Its no-code option costs 0.5% per transaction where you are registered. The API option costs $0.50 per transaction, which is half of a $1 charge.
Stripe Managed Payments makes Stripe the merchant of record for an extra 3.5% per transaction. It works with Checkout and Payment Links. In early 2026 it was invite-only in some countries. We could not confirm that it is open to everyone as of October 2026.
Standard payouts are free. Instant payouts cost 1.5%. Disputes cost $15.
Paddle
Paddle charges 5% + $0.50 per transaction and says there are no monthly fees. It does not publish separate surcharges for international cards or PayPal. Paddle states that products under $10 can contact them for custom pricing. If you sell at $1–5, ask before you start.
Payouts are monthly, with a $100 minimum. Smaller balances roll over. At $3 a month you need about 43 paying customers before you get a payout each month.
Lemon Squeezy
Lemon Squeezy charges 5% + $0.50, plus 1.5% for non-US payments, 1.5% for PayPal and 0.5% for subscriptions. It also offers custom pricing for products under $10.
Stripe owns Lemon Squeezy. In a January 2026 update, the team said its focus has moved to Stripe Managed Payments, with fewer product updates. Signups were still open when we checked, but we could not confirm how quickly new stores are approved.
Payouts are twice a month. Payouts to US banks are free. Payouts to non-US banks cost 1%.
Polar
Polar has tiered plans. New accounts start on Starter: $0 a month, 5% + $0.50 per transaction. International cards add 1.5%.
| Polar plan | Monthly fee | Per transaction |
|---|---|---|
| Starter | $0 | 5% + $0.50 |
| Pro | $20 | 3.8% + $0.40 |
| Growth | $100 | 3.6% + $0.35 |
| Scale | $400 | 3.4% + $0.30 |
Pro only pays off once your monthly revenue is high. At $3 a charge, Pro saves about $0.13 per transaction, so you need roughly 150 charges a month before the $20 fee is covered.
Polar passes on payout costs: $2 a month with active payouts, plus 0.25% + $0.25 per payout.
Dodo Payments
Dodo Payments charges 4% + $0.40 for US cards. International cards add 1.5%, subscriptions add 0.5%, and PayPal adds 3%. Refunds cost $1 each and disputes cost $30.
The pricing page was inconsistent on payouts when we checked: the table lists regular payouts as free, but the FAQ mentions $5 for payouts under $1,000. Ask Dodo directly.
Razorpay (India)
Razorpay charges 2% per domestic transaction with no fixed fee. Subscriptions add 0.9% (a limited-time 0.5% was also shown). International cards cost up to 3%. GST of 18% applies to Razorpay's fees, not to your sale.
Razorpay is a good fit if most of your customers pay in rupees. It is not a merchant of record, so tax outside India is your job.
What you keep from each charge
This table uses each provider's base domestic-card rate as of October 2026. Subscription surcharges are included for the monthly columns. Tax is not included: with a merchant of record, tax is either added at checkout or taken out of your price, depending on your settings.
| Provider | $1/mo | $2/mo | $3/mo | $5/mo | $19 pay once |
|---|---|---|---|---|---|
| Stripe + Billing | $0.66 | $1.63 | $2.59 | $4.52 | $18.15 |
| Stripe + Billing + Tax (no-code) | $0.66 | $1.62 | $2.58 | $4.50 | $18.05 |
| Stripe Managed Payments | $0.63 | $1.56 | $2.49 | $4.34 | $17.48 |
| Paddle | $0.45 | $1.40 | $2.35 | $4.25 | $17.55 |
| Lemon Squeezy | $0.44 | $1.39 | $2.33 | $4.22 | $17.55 |
| Polar Starter | $0.45 | $1.40 | $2.35 | $4.25 | $17.55 |
| Dodo Payments | $0.55 | $1.51 | $2.46 | $4.38 | $17.84 |
| Razorpay (INR, incl. GST on fees) | $0.97 | $1.93 | $2.90 | $4.83 | $18.55 |
How these were worked out: kept = price − (price × percentage) − fixed fee. For example, Paddle on $1: $1 − $0.05 − $0.50 = $0.45. Stripe on $1 with Billing: $1 − $0.036 − $0.30 = $0.66. Razorpay amounts are the USD equivalent of a rupee charge.
Assumptions:
- Stripe subscriptions use 2.9% + 0.7% Billing + $0.30. The pay-once column uses 2.9% + $0.30.
- Managed Payments is assumed to stack on top of Billing for subscriptions. We could not confirm this.
- Paddle's rate is the published rate. Custom pricing for products under $10 may be better.
- An international card typically adds 1.5% on every provider. On a $3 charge that is about $0.05 less.
Yearly and pay once beat monthly on fees
The fixed fee is charged per transaction. A yearly plan pays it once instead of twelve times.
| Provider | $10/year | 12 × $1/month | $30/year | 12 × $3/month |
|---|---|---|---|---|
| Stripe + Billing | $9.34 | $7.97 | $28.62 | $31.10 |
| Paddle / Polar Starter | $9.00 | $5.40 | $28.00 | $28.20 |
| Lemon Squeezy | $8.95 | $5.34 | $27.85 | $28.02 |
| Dodo Payments | $9.15 | $6.66 | $28.25 | $29.58 |
| Razorpay | $9.66 | $11.59 | $28.97 | $34.77 |
What this shows:
- $10 a year keeps more than twelve $1 charges on every provider with a fixed fee, even though it bills $2 less. On Paddle you keep $9.00 instead of $5.40.
- At $3 a month, the gap between $30 a year and 12 monthly charges almost disappears on Paddle, Lemon Squeezy and Polar.
- Razorpay has no fixed fee, so monthly billing costs nothing extra there.
- A $19 pay-once purchase loses 2–8% to fees, compared with 34–56% for a single $1 charge on providers with a fixed fee.
If you charge under $3 a month, lead with a yearly plan. More on structuring plans in How to price a SaaS at $1–5 a month.
Which one to pick
- Selling worldwide, solo, at $3 or more: a merchant of record. Compare Dodo Payments, Paddle (ask about pricing under $10) and Polar.
- Selling at $1–2 a month: sell yearly plans, or ask Paddle or Lemon Squeezy for custom small-product pricing.
- Mostly US customers, and willing to handle tax: Stripe with Billing keeps the most per charge.
- Mostly Indian customers paying in rupees: Razorpay.
- Check payout minimums. A $100 minimum payout delays your first payment if you start small.
What could not be verified
- Stripe's US pricing pages were read from archived copies dated late October 2026, because the live site redirected to another region from our location.
- Whether Stripe Billing's 0.7% stacks with Managed Payments.
- Paddle's rate for products under $10 is not published.
- Dodo Payments' payout fee, because its own page gives two different answers.
- Razorpay's UPI fee, because two of its official pages disagree.
List your app
If your app costs $5 a month or less to start, you can list it on One Dollar SaaS for free.