Payment Gateway Fee Calculator

About the Payment Gateway Fee Calculator

Enter your provider’s percentage and fixed fee — for cards, UPI, wallets or PayPal-style checkouts — and the GST or VAT it charges on that fee, and see what a payment leaves you: the fee, the tax, any currency-conversion markup, the amount you receive and the effective rate. The calculator also works out the gross-up price: what to charge so that you receive an exact amount after fees.

Compare up to four providers, or the payment methods of one provider, side by side, with the monthly cost at your volume and the payment size at which one becomes cheaper than another. No provider’s prices are built in — rates change and differ by plan, so you enter the ones from your agreement or price list.

How the fees are worked out

• Fee = percentage × payment + fixed fee.
• Tax on the fee = tax rate × fee. In India, GST at 18% is charged on a gateway’s fee, not on the payment itself — gateways’ price lists say so.
• Conversion cost = markup × payment, when the payment is converted from another currency.
• You receive = payment − fee − tax − conversion cost; the effective rate is what was taken off, as a percentage of the payment.

Each amount is rounded to the paisa or cent, as on a settlement report. On ₹10,000 at 2% plus 18% GST, the gateway keeps ₹236 — an effective rate of 2.36%, not 2%.

The gross-up price

To receive an exact amount N, you cannot just add the fee to N: the fee is also charged on the extra. The price that works is

P = (N + fixed × (1 + tax)) ÷ (1 − rate × (1 + tax) − markup)

which, with no tax and no conversion, is the familiar (N + fixed) ÷ (1 − rate). To receive ₹10,000 at 2% plus 18% GST you need ₹10,000 ÷ (1 − 0.0236) = ₹10,241.70, not ₹10,236. The calculator then checks the rounded fees and gives the lowest price, to the paisa, that leaves at least N. If the percentages add up to 100% or more, no price works.

Before adding fees to a customer’s price as a surcharge, check your provider’s terms and the card-network rules that apply to you.

Comparing providers and the break-even size

A provider with a lower percentage but a fixed fee costs more on small payments and less on large ones. They cost the same where rate₁ × P + fixed₁ = rate₂ × P + fixed₂ (with tax on both), so the break-even payment is (fixed₂ − fixed₁) ÷ (rate₁ − rate₂). For 2% against 1.75% + ₹3, both with 18% GST, that is ₹3.54 ÷ 0.295% = ₹1,200: below it 2% is cheaper, above it 1.75% + ₹3. Enter your typical payment and the number of payments a month to see the difference in money.

Tax on fees and input tax credit

GST or VAT on the fee is shown as a cost because it reduces the payout. A business registered for GST in India — or for VAT elsewhere — can usually claim it back as input tax credit, so its real cost is the fee alone. The payout still drops by the tax until the credit is used. The GST calculator works out GST on any amount; selling on a marketplace, use the marketplace fee calculator, which adds commissions, shipping, TCS and TDS.

Limitations

• Fees are what you enter; nothing is looked up. Plans, negotiated rates, card types and caps vary — check your provider’s current price list or agreement.
• Refunds, chargebacks, settlement charges, monthly platform fees and minimum fees are not included.
• The conversion markup is applied to the payment amount; providers apply exchange-rate spreads in different ways, so treat it as an estimate.
• Taxes withheld on payouts (such as TDS) are not deducted.

Privacy

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.