Stripe vs Lemon Squeezy vs Gumroad: cost comparison for indie devs | steep
Stripe vs Lemon Squeezy vs Gumroad: cost comparison for indie devs
comparisonstripelemonsqueezygumroadpricing
Three providers dominate indie digital-product checkout in 2026. They are priced differently, handle tax differently, and have very different ergonomics. Here is what each actually costs you and where each shines.
## TL;DR
- **Stripe**: best DX, lowest fees, you handle sales tax. Best for US-only or simple international.
- **Lemon Squeezy**: ~5% all-in including merchant-of-record tax compliance. Best for international, low-tax-tolerance.
- **Gumroad**: simplest, no domain needed, 10% takeaway. Best for quick experiments, viral products.
## Real fees on a $50 sale
| Provider | Card fee | Other | Tax handled? | You keep |
|---|---|---|---|---|
| Stripe | $1.78 (3% + 30¢) | $0 base | Stripe Tax: 0.5%/txn (extra) | $48.22 (or $47.97 with Tax) |
| Lemon Squeezy | $2.50 (5%) | $0 | Yes (MoR) | $47.50 |
| Gumroad | $5 (10% flat for $50) | $0 | Yes (MoR) | $45 |
At high volume Stripe wins by a mile. At low volume the difference is rounding error and you should pick on workflow.
## Tax handling
This is the biggest hidden cost.
**Stripe**: you are responsible for collecting, reporting, and remitting sales tax / VAT in every jurisdiction where you have nexus. Stripe Tax automates calculation and collection (extra 0.5% per transaction once enabled), but you still file the returns. For US-only sellers under $100k revenue this is manageable solo. International gets painful fast.
**Lemon Squeezy / Gumroad**: merchant of record. They are the legal seller; they collect, report, and remit on your behalf. You get a 1099 (or local equivalent) at year-end. For a non-tax-savvy solo dev selling globally this saves dozens of hours per year.
## When each wins
### Stripe
- US-only or US-primarily
- You enjoy or already do sales tax
- You want lowest fees
- You want full control over the storefront UX
- You will customize the checkout flow heavily
### Lemon Squeezy
- International audience
- You hate tax paperwork enough to pay 2-3% for it to disappear
- You are fine with a slightly less polished checkout
- You do not want to maintain an admin panel for orders / refunds
### Gumroad
- You do not want a website at all (Gumroad hosts the product page)
- You are testing an idea before investing in a real store
- The product is small, viral, low-margin
- You are ok with the 10% fee for the simplicity
## Switching cost
If you start with Gumroad and grow past $50k/year, switching to Stripe saves you thousands but requires you to: build a real storefront, set up sales tax, migrate customer + order history (or accept loss). Plan for ~40 hours of work + a customer-comms moment.
Lemon Squeezy → Stripe is the same work, plus you are now responsible for tax compliance you were not before.
Stripe → either of the others is rare; people only do it when they hit a tax wall they cannot deal with.
## My recommendation
Start with Stripe if you are US-based and comfortable filing one or two state returns per year. Switch to Lemon Squeezy if you find yourself selling internationally and the VAT paperwork is consuming a weekend per quarter. Skip Gumroad unless you have a specific reason to (low-friction launch, very small price points).