Calculate transaction fees from a percentage fee plus a fixed fee per transaction, see net proceeds, or find the charge needed to net a target amount.

USD model for identical transactions. Enter your own rate and fee; no provider pricing is assumed.

Enter 0 if there is no percentage fee.

Blank means no fixed fee.

Blank means 1 transaction when finding fees; required for an average.

Optional settings

Transaction Cost Formula

For recorded average cost, divide matching total costs by transaction count. In the fee model, fee = gross × percentage ÷ 100 + fixed fee, and net = gross − fee. The target-net mode solves gross = (target + fixed fee) ÷ (1 − percentage ÷ 100), then rounds the charge up to a cent. All amounts use USD; there is no currency conversion. Displayed money rounds half up to cents. Period fee totals use unrounded modeled fees, so providers that round individual fees may differ.

TC = CT / T

Historical payment-cost background (Canadian 2014 data; not current provider pricing):  Staff Discussion Paper 2017-4: The Costs of Point-of-Sale Payments in Canada (2017)

  • Where TC is the cost per transaction ($/transaction)
  • CT is the cost of all transactions
  • #T is the number of transactions

To calculate the cost per transaction, divide the cost of all transactions by the number of transactions.

What is a Transaction Cost?

Definition:

Transaction costs are costs associated with transactions. Their average is total recorded costs divided by the matching transaction count. The separate percentage-plus-fixed model estimates a fee structure you supply; it does not determine provider pricing or payment rules.

How to Calculate Transaction Costs?

Example Problem:

The following example outlines the steps and information needed to calculate Transaction Costs.

First, determine the cost of all transactions. For this example, a business is charged $1,000.00 in transaction fees over a month.

Next, determine the number of transactions. In this case, the number of transactions is 50 over that one-month period.

Finally, calculate the cost per transaction using the formula above:

TC = CT / #T

TC = $1,000.00 / 50

TC = $20.00 / transaction