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# Payhip Is Free Forever and Takes 5% of Everything
- URL: https://efreedirectory.com/payhip-free-plan-limits/
- Published: 2026-10-23T12:11:55.000Z
- Updated: 2026-10-23T12:12:38.000Z
- Description: Every feature is on every plan, including free. The only thing that changes as you pay more is how large a cut Payhip takes.
- Author: Chintan Dhokai
- Tags: tool, Website Builders

**Payhip's free plan costs $0 a month and takes a 5% transaction fee on each sale, on top of whatever PayPal or Stripe charge. It includes every feature, unlimited products and unlimited revenue. Plus is $29 a month with a 2% transaction fee, and Pro is $99 a month with no transaction fee at all.**[1](#sources)

Payhip is unusual in that it does not gate features. The pricing page says so directly: all plans have the same capabilities, and the only variable is the percentage. That makes the decision a pure arithmetic question about volume.

## The plans, measured

|               | Free Forever | Plus      | Pro       |
| ------------- | ------------ | --------- | --------- |
| Monthly fee   | $0           | $29       | $99       |
| Payhip fee    | 5%           | 2%        | 0%        |
| Products      | Unlimited    | Unlimited | Unlimited |
| Revenue cap   | None         | None      | None      |
| Features      | All          | All       | All       |
| Card required | No           | Yes       | Yes       |

**Prices measured on 22 October 2026.** Vendor plan terms, allowances and prices change without notice, so treat every figure on this page as a dated snapshot rather than a permanent fact. Where a number here differs from the vendor's own pricing page, the vendor's page is correct and the figure above is simply older than it.

## The break-even is about $967 a month

The difference between free and Plus is three percentage points. At $29 a month, that gap closes when 3% of your sales equals $29, which happens at roughly $967 of monthly revenue.

| Monthly sales | Free (5%) | Plus ($29 + 2%) | Cheaper plan |
| ------------- | --------- | --------------- | ------------ |
| $250          | $12.50    | $34.00          | Free         |
| $500          | $25.00    | $39.00          | Free         |
| $967          | $48.35    | $48.34          | Level        |
| $2,000        | $100.00   | $69.00          | Plus         |
| $10,000       | $500.00   | $229.00         | Plus         |

Pro at $99 breaks even against Plus at roughly $9,900 of monthly sales, since it removes the remaining 2% for a $70 increase in the fee. Below that, Plus is cheaper; above it, Pro is.

Those figures exclude PayPal and Stripe charges, which apply on every plan and are not Payhip's revenue.

## Selling nothing costs nothing

This is the strongest argument for the free tier. A shop that sells two things a month pays 5% of two things, which is pennies. There is no monthly bill to justify before the shop works.

For digital products especially, where there is no inventory and no shipping, that makes Payhip a zero-risk way to test whether anyone wants what you have made.

## What you get without paying

Unlimited products, a hosted storefront, checkout, discount codes, and automatic handling of EU and UK VAT on digital sales. Payhip collects and remits digital VAT and US and Canadian sales tax on your behalf, which is a substantial piece of administration removed.

Customers pay by card or PayPal. Files are delivered automatically after purchase. Payouts arrive after the transaction completes rather than on a monthly cycle.

## When the free plan is enough

A first product. A side project that sells occasionally. Anyone whose monthly revenue is under about $950, where the 5% is genuinely cheaper than paying a subscription.

It is also fine for a catalogue that sells in bursts, since there is no monthly cost during the quiet months. A shop that sells nothing in January pays nothing in January, which is a property no subscription platform can offer.

The other case worth naming is a pre-launch shop. You can list products, set prices and share a preview link before you have sold anything, and the first sale costs 5% of itself rather than a month of subscription.

## When it stops being enough

At roughly $967 a month, consistently. Past that point the 5% is costing more than a subscription would, and the switch is mechanical rather than strategic.

Because nothing else changes on the upgrade, there is no feature to wait for and no migration to plan. You change the plan and the percentage moves.

## How it compares

Against [Ecwid](https://efreedirectory.com/ecwid-free-plan-limits/), Payhip is free to start where Ecwid now begins at a paid tier. Against [Gumroad](https://efreedirectory.com/gumroad-free-plan-limits/), which charges 10% plus 50 cents direct and 30% through its marketplace, Payhip's 5% is half the direct rate. Against [Square](https://efreedirectory.com/square-free-plan-limits/), Payhip charges a platform fee where Square charges none, but Square's store is built for physical goods and in-person selling.

Against [Big Cartel](https://efreedirectory.com/big-cartel-free-plan-limits/), Payhip takes 5% and Big Cartel takes nothing beyond payment processing, but Big Cartel caps free shops at five products while Payhip is unlimited.

## Frequently asked questions

**Is Payhip really free?**  
Yes. No monthly fee, unlimited products, and a 5% transaction fee on sales.

**Do I still pay Stripe or PayPal fees?**  
Yes. Payhip's percentage is on top of your payment processor's standard rate.

**Are features limited on the free plan?**  
No. Payhip states that all plans have the same features. Only the transaction fee differs.

**When should I upgrade to Plus?**  
At roughly $967 a month in sales, where the lower percentage stops being cheaper than the fee.

**Does Payhip handle tax?**  
Yes, it collects and remits digital EU and UK VAT and US and Canadian sales tax on your behalf.

*Plans, fees and tax handling verified against Payhip's own pricing page on 23 October 2026.*

## Sources

1. Payhip pricing: [payhip.com/pricing](https://payhip.com/pricing?ref=efreedirectory.com).

*All sources are the vendor's own plan or documentation pages, checked on 22 October 2026\. Plan terms change without notice, so confirm current limits before you rely on them.*