Payment fees
Effective processing rate calculator.
Enter the month's card volume and every fee on your merchant statement. See the all-in effective rate, the cost per transaction and the savings at a rate you want.
Effective rate = total fees / card volume. With $20,000.00 of volume and $700.00 of fees, the effective rate is 3.50% ($1.75 per transaction on a $50.00 average ticket). Reaching 2.6% would save $2,160.00 a year.
Your numbers
Result
Worked example
A month with $20,000.00 of card volume across 400 transactions and fees of $540.00 (percentage), $120.00 (per transaction), $25.00 (monthly) and $15.00 (other) totals $700.00. Effective rate = $700.00 / $20,000.00 = 3.50%. Average ticket = $20,000.00 / 400 = $50.00 and the average fee per transaction is $1.75. At 2.6% the month would cost $520.00, saving $180.00 a month or $2,160.00 a year.
How it works
Effective rate = every fee you paid in the month / total card volume. It is the number to compare across processors because quoted rates leave out per-transaction, monthly and other charges. Add up everything on the statement, not only the headline percentage.
To model a specific provider's rate card across sales sizes, use the Stripe, PayPal or Square and Shopify Payments calculators, and to compare plans use the fee comparison calculator. This page does no outside lookups and uses only the numbers you enter.
Estimates only, from numbers you enter. Not legal, tax or financial advice. Rates and rules change: verify them with your provider.
Everything runs in your browser. Nothing you type is sent or stored.
FAQ
How do I calculate my effective processing rate?
Divide all processing fees for a period by the card volume for that period and multiply by 100. Include percentage fees, per-transaction fees, monthly and gateway fees and other charges.
Why is my effective rate higher than the quoted rate?
Quoted rates usually cover the percentage and per-transaction fee. Monthly fees, chargebacks and other charges add to the total, and small average tickets make the fixed per-transaction fee a larger share.
Should I include chargeback fees?
Yes if you want the all-in cost of processing. You can also enter 0 for other fees to see the rate without them.
What is a good effective rate?
There is no single standard. It depends on your average ticket, card mix, in-person or online mix and processor, so compare your own rate across statements and providers rather than to a generic figure.
Is this financial advice?
No. It is an estimate based only on the numbers you enter.