Short answer: Stripe is the cheapest of the three on processing fees. On a $29/month plan with US customers, Stripe with Stripe Billing costs $1.34 per renewal, Paddle $1.95 and Lemon Squeezy $2.10. But Stripe is a payment processor, not a merchant of record: you still register for, collect and file sales tax and VAT yourself. Once your customers are mostly international and you add Stripe Tax, Stripe and Paddle cost almost the same, and Paddle does the tax filing for you. Lemon Squeezy is the most expensive of the three in every scenario below.
You can run your own numbers in the free payment fee comparison tool, which uses the same rates as this article.
The Headline Rates
Rates for a US-based business, checked against each provider's pricing page on October 30, 2026.
| Stripe | Paddle | Lemon Squeezy | |
|---|---|---|---|
| Type | Payment processor | Merchant of record | Merchant of record |
| Base fee | 2.9% + $0.30 | 5% + $0.50 | 5% + $0.50 |
| Subscriptions | +0.7% (Stripe Billing) | Included | +0.5%* |
| International cards | +1.5% (+1% if currency conversion) | Included | +1.5% |
| Sales tax / VAT | Stripe Tax ~0.5% where registered, filing is on you | Included, Paddle files | Included, Lemon Squeezy files |
| Chargeback liability | Yours | Paddle's | Lemon Squeezy's |
*Lemon Squeezy's pricing page lists the international surcharge but not the subscription one; the +0.5% comes from third-party fee trackers. Confirm with Lemon Squeezy if it changes your decision.
Sources: Stripe pricing, Stripe Billing pricing, Paddle pricing, Lemon Squeezy pricing.
Scenario 1: $29/month Plan, US Customers
500 subscription renewals a month, all US cards.
| Provider | Fee per renewal | Share of price | Fees per month | Fees per year |
|---|---|---|---|---|
| Stripe + Billing | $1.34 | 4.6% | $672 | $8,064 |
| Stripe + Billing + Tax | $1.49 | 5.1% | $745 | $8,934 |
| Paddle | $1.95 | 6.7% | $975 | $11,700 |
| Lemon Squeezy | $2.10 | 7.2% | $1,048 | $12,570 |
For a US-focused SaaS, Stripe saves about $2,800 to $3,600 a year at this size compared with Paddle. Whether that's worth it depends on how many states you have sales tax obligations in and what you pay someone to file. Many US B2B SaaS companies only have nexus in a handful of states, which makes Stripe the clear winner here.
Scenario 2: $29/month Plan, International Customers
Same plan and volume, but every customer pays with a card issued outside the US.
| Provider | Fee per renewal | Share of price | Fees per month | Fees per year |
|---|---|---|---|---|
| Stripe + Billing | $1.78 | 6.1% | $890 | $10,674 |
| Stripe + Billing + Tax | $1.92 | 6.6% | $962 | $11,544 |
| Paddle | $1.95 | 6.7% | $975 | $11,700 |
| Lemon Squeezy | $2.53 | 8.7% | $1,265 | $15,180 |
This is where the comparison flips. Paddle's rate doesn't change for international customers, while Stripe and Lemon Squeezy both add 1.5%. With Stripe Tax added, Stripe costs $156 a year less than Paddle, and that's before currency conversion (+1% if you charge in the customer's currency) and before you register for VAT in the EU and UK and file returns yourself. For a SaaS selling mainly to consumers or small businesses abroad, Paddle is usually cheaper in practice.
Scenario 3: $9/month Plan
1,000 renewals a month, US cards. Low prices are where fixed fees hurt.
| Provider | Fee per renewal | Share of price | Fees per year |
|---|---|---|---|
| Stripe + Billing | $0.62 | 6.9% | $7,488 |
| Paddle | $0.95 | 10.6% | $11,400 |
| Lemon Squeezy | $1.00 | 11.1% | $11,940 |
Paddle and Lemon Squeezy take over 10% of a $9 payment because of the $0.50 fixed fee. Paddle also says orders under $10 get bespoke pricing, so ask them before you rely on this number. If you sell a cheap plan, two things help on any provider:
- Offer annual billing. A $90/year plan pays the fixed fee once instead of twelve times.
- Raise the price a little. Moving from $9 to $12 drops Paddle's share from 10.6% to about 9.2%.
Scenario 4: Annual Plan
A $290/year plan, one payment, US card.
| Provider | Fee | Share of price |
|---|---|---|
| Stripe + Billing | $10.74 | 3.7% |
| Paddle | $15.00 | 5.2% |
| Lemon Squeezy | $16.45 | 5.7% |
Compare that with twelve monthly payments of $29 on Paddle: $23.40 in fees for $348 of revenue. Annual billing is the cheapest way to cut payment fees on every provider.
What the Fee Doesn't Show
The headline rate is only part of the cost.
Tax compliance. With Stripe, you are the seller. Stripe Tax calculates and collects tax, but registering in each country or state and filing returns is your job or your accountant's. Paddle and Lemon Squeezy are the seller, so they register, collect, file and remit.
Chargebacks. On Stripe, disputes and their fees are yours. A merchant of record takes on that liability.
Lemon Squeezy's future. Stripe bought Lemon Squeezy in 2024, and in January 2026 Lemon Squeezy said its future is being built through Stripe Managed Payments. It still works, but if you're choosing for the next few years, weigh that. We cover it in Lemon Squeezy vs Stripe.
Other merchants of record. Paddle and Lemon Squeezy aren't the only options. Dodo Payments (4% + $0.40) and Creem (3.9% + $0.40) charge less than either, costing $1.53 to $1.71 per renewal in the $29 US scenario. Polar's free plan matches Paddle at 5% + $0.50, and its paid plans go down to 3.4% + $0.30. The fee comparison tool covers all of them.
Which Should You Choose?
- Choose Stripe if most customers are in the US or a few countries where you already handle tax, you sell B2B, or you want full control over billing. It has the lowest fees.
- Choose Paddle if you sell to customers in many countries and don't want to register for and file VAT, GST and sales tax. Its flat rate stays the same for international cards and subscriptions.
- Choose Lemon Squeezy only if you're already on it and happy. It costs more than Paddle in every scenario here, and its own roadmap points towards Stripe Managed Payments.
Not sure? The free Which Payment Provider Should I Use? quiz asks six questions and ranks the options for your business.
Assumptions
- Standard published pricing for a US-based business, no volume discounts or negotiated rates.
- Stripe Tax at about 0.5% per transaction where you're registered. The cost of filing returns isn't included.
- Prices are before tax. Currency conversion, refunds, dispute fees and payout fees aren't included.
- Lemon Squeezy's subscription surcharge is from third-party trackers, not its own pricing page.
Further Reading
- Stripe vs Lemon Squeezy vs Polar vs Creem by TurboStarter: a detailed fee table that also covers Polar's plans, Creem and Dodo Payments, with fees verified in October 2026.
- Stripe vs Paddle vs Lemon Squeezy for micro-SaaS by F3 Fund It: the same three-way comparison worked through on a $20 plan, with international scenarios.
Track What You Actually Pay
Whichever provider you choose, your real fee rate depends on your plan mix, refunds and where your customers are. Chartsy connects to Stripe, Paddle, Lemon Squeezy and other providers and shows your MRR, churn and revenue in one dashboard, so you can see the effect of a pricing or provider change instead of guessing.
Written by
Chartsy TeamAnalytics team at Chartsy
The Chartsy Team writes guides, product updates, and resources to help SaaS and eCommerce founders make sense of their metrics, without SQL or spreadsheets.
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