Payment Gateway Fee Calculator
Calculate exact fees for PayPal, Stripe, Razorpay & other payment processors
Understanding Payment Gateway Fees
Payment gateways charge fees for processing online transactions. These typically include a percentage fee of the transaction amount plus a fixed fee per transaction. Understanding these fees helps you price your products correctly and know your actual revenue.
Popular Gateway Fee Structures
- PayPal: 3.9% + fixed fee (varies by country). International transactions cost more.
- Stripe: 2.9% + $0.30 per successful transaction in the US.
- Razorpay: 2% for domestic Indian cards, 3% for international.
- PayU: 2% + 18% GST on the fee for Indian transactions.
Example Calculation
If you receive $10,000 via Stripe (2.9% + $0.30):
- Percentage Fee: $10,000 × 2.9% = $290
- Fixed Fee: $0.30
- Total Fees: $290.30
- You Receive: $9,709.70
- Effective Rate: 2.903%
Which payment gateway has the lowest fees?
Razorpay and PayU typically offer lower fees (2%) for Indian domestic transactions compared to PayPal (3.9%). For US transactions, Stripe (2.9%) is generally cheaper than PayPal.
Are payment gateway fees tax deductible?
Yes, payment gateway fees are considered business expenses and are typically tax-deductible. Keep records of all transaction fees for your tax filing.
Do I pay fees on refunds?
Most gateways do NOT refund the transaction fees when you issue a refund. Some may charge an additional refund fee. Always check your gateway's refund policy.
How can I reduce payment gateway fees?
Strategies include: negotiating volume discounts, using ACH/bank transfers (lower fees), encouraging larger transactions (fixed fee becomes smaller percentage), or using gateways with monthly plans for high volume.