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Payment Gateway Fee Calculator

Payment gateway fees including tax and the fixed component. The advertised rate is neither: tax on the fee and a flat charge per transaction both push the effective rate above it, and small tickets suffer most.

Also called: payment processing fees, razorpay fee calculator.

$
%
$
%
Fee on this transaction
$62.54

$62.54 on 2,500, so you receive $2,437.46. That is an effective rate of 2.5%. Across 1,200 transactions a month the fees come to $75,048.00.

You receive
$2,437.46
Effective rate
2.5%
Percentage component
$50.00
Tax on the fee
$9.54
Monthly fees
$75,048.00
Annual fees
$900,576.00
Method and background

How this is calculated

The fee is a percentage plus a flat amount, and tax applies to the total. A quoted two percent on a small transaction can land near five once a three rupee flat fee and eighteen percent tax are added, which is why low-value businesses feel gateway costs far more than the headline suggests. The effective rate shown here is the number to compare between providers.

the percentage and fixed parts are both taxed, which the headline rate omits
a
Amount
R
Rate
k
Fixed fee
t
Tax on the fee

Method and limits

What it assumes

  • A single rate. Cards, bank transfers and wallets are usually priced differently from each other.

What it deliberately does not model

  • International cards, EMI and instalment options carry higher rates.
  • Chargebacks and refunds have their own fees, not modelled here.

Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator

Frequently asked questions

Why is my effective rate above the quoted one?
The flat fee per transaction and the tax on the fee. On small tickets the flat component dominates, which is why the effective rate falls as ticket size rises.