How transaction fees are calculated
Payment processors and gateways commonly combine a percentage charge with a fixed fee. For that model, fee = amount charged × percentage fee + fixed fee. Your estimated net receipts equal the amount charged minus that fee.
The effective fee rate divides the total fee by the amount charged. It can be higher than the advertised percentage because the fixed component has more impact on smaller transactions.
Worked example
On a $100 charge with a 2.9% fee plus $0.30, the fee is $3.20 and the estimated net is $96.80. The effective fee rate is 3.20%.
Calculate the amount to charge
To receive a target amount after transaction fees, switch to Required charge and use required charge = (desired net + fixed fee) ÷ (1 − percentage fee). The percentage must be below 100%.
Assumptions and limitations
- This is provider-neutral and does not include taxes, currency conversion, chargebacks, refunds, tiered pricing, or special card rates.
- Enter the fee schedule that applies to your transaction; providers can change pricing.
- All amounts use the selected currency. Currency selection changes formatting, not exchange rates.
- Displayed money is rounded to two decimal places; providers may round individual fee components differently.
Last reviewed: September 11, 2026 · Confirm fees with your provider. See an issue? Request a correction.