Method and assumptions
Payment providers commonly combine a percentage with a fixed fee per transaction. Smaller transactions therefore carry a higher effective fee rate.
Total fee = payment volume × fee rate + transaction count × fixed fee. Required charge = (target net + fixed fee) / (1 - fee rate).
Worked scenario
Enter monthly payment volume, transaction count, percentage rate and fixed charge. Compare a few large transactions with many small transactions at the same volume to see how the fixed component changes the effective rate. Use the gross-up result only when contracts and customer communication permit surcharging.
How to interpret the result
The effective processing rate equals total fees divided by processed volume and therefore depends on average ticket size. Refunds, chargebacks, cross-border cards, currency conversion and alternative payment methods may have different charges. Segment them when they are material instead of hiding them in one headline rate.
Input reference
- Currency
- Example default: USD
- Amount per transaction
- Example default: 50
- Transactions
- Example default: 100
- Processing rate
- Example default: 2.9%
- Fixed fee per transaction
- Example default: 0.3
- Other processing fees
- Example default: 0
- Target net receipt per transaction
- Example default: 50
Common mistakes
- Ignoring the fixed fee when evaluating small orders.
- Using domestic card pricing for cross-border payment mix.
- Assuming fees are returned in full after a refund.
Before using the result
- Use transaction count and volume from the same period.
- Separate materially different payment methods.
- Reconcile effective rate with a processor statement.
Questions to check before deciding
Why is the effective rate above the advertised rate?
The fixed fee increases the effective percentage, especially for small transactions.
Does this include currency conversion?
Only when you enter it under other processing fees. Exchange-rate spreads are not estimated.
Independent calculator. Not affiliated with or endorsed by the platforms mentioned.