Profit After Payment Fees Calculator

Enter what you are invoicing and how you are being paid. The figure worth looking at is the effective rate — the fixed per-transaction charge is what makes a small invoice cost far more than the headline percentage suggests.

What this tool does

Card and wallet pricing is quoted as a percentage plus a fixed amount, and the fixed part does the damage. At 2.9% + 30¢ a $1,000 invoice loses 2.93% and a $25 invoice loses 4.12% — identical pricing, half again as expensive, because the fixed component does not shrink with the invoice.

This works in both directions: what lands from a given invoice, and what you would have to charge for a specific sum to land intact. The second is not the first with the percentage added on, because the processor then takes its cut of the larger figure too. Whether you may pass fees to a customer at all is governed by card scheme rules and local law, and the answer differs by country and by card type.

How it works

  1. Pick a pricing model, or enter your own

    The presets are published standard rates, each showing the date it was last checked. Negotiated volume pricing, international cards and currency conversion all move the real number, so the figure on your own processor statement beats any preset here.

  2. The charge has two parts

    A percentage of the transaction plus a fixed amount per transaction. Both come out before the money reaches you, which is why what lands is never the invoice total and never a clean percentage of it either.

  3. Read the effective rate

    Total charge divided by the invoice amount. It is the only figure that lets you compare a 3.49% + 49¢ model against a 1.5% + 20p one at the invoice sizes you actually issue, rather than at the size the marketing page assumes.

  4. Gross up when an exact sum must land

    Adding the percentage on top under-recovers every time. The correct form divides by one minus the rate after adding the fixed charge, because the percentage applies to the grossed-up figure and not to the original.

Worked example

The same card pricing — 2.9% plus $0.30 — applied to a $250 invoice and a $25 invoice.

Inputs

Invoice A
$250.00
Invoice B
$25.00
Pricing
2.9% + $0.30

Result

Charge on A
$7.55
Lands from A
$242.45
Effective rate on A
3.02%
Charge on B
$1.03
Effective rate on B
4.12%

Why it matters: Same pricing, and the small invoice costs a third more in percentage terms. Ten $25 invoices give up $10.30 where one $250 invoice gives up $7.55 — which is an argument for consolidating small charges onto one document, not for changing processor.

Best practices

  • Compare processors at the invoice sizes you actually issue, not at $1,000. The fixed component decides which model is cheaper on small tickets, and it can reverse the ranking entirely.
  • Consolidate small charges into one periodic invoice where the customer will accept it. Every separate transaction pays the fixed charge again.
  • Offer bank transfer on large invoices. Card fees on an £8,000 invoice buy a convenience most customers would happily forgo if asked.
  • Book the fee as a cost rather than netting it off the sale. Recording only what landed understates income and expenses at once, and hides what processing costs you across a year.
  • Check the rate you are actually charged against the rate you believe you are on. Commercial and cross-border cards are routinely billed at higher tiers than the advertised one.

Common mistakes

Adding the percentage to recover the fee

Charging 2.9% on top of a $100 invoice recovers $2.90 — then the processor takes 2.9% of $102.90 plus 30¢, and you are still short. Recovering correctly means dividing by one minus the rate, not multiplying by one plus it, and the gap widens as the rate rises.

Ignoring the fixed charge on small transactions

A 30¢ fixed component on a $5 charge is 6% before any percentage applies. Businesses billing many small amounts frequently find processing is among their largest costs and have never seen it as a line of its own, because it is deducted before the money arrives.

Surcharging without checking whether you may

Passing fees to customers is restricted or prohibited for certain card types in certain countries, with card scheme rules applying on top of local law. This computes the number; it cannot tell you whether charging it is lawful where you trade, and a prohibited surcharge is normally refundable.

Comparing headline rates rather than effective ones

1.5% + 20p comfortably beats 2.9% + 30¢ on a £500 invoice, and the gap narrows sharply on a £10 one. Only the effective rate at your own invoice sizes answers the question you are actually asking.

Frequently asked questions

What does 2.9% + 30¢ actually cost me?

On $250 it is $7.55, an effective 3.02%. On $25 it is $1.03, an effective 4.12%. The fixed part does not scale, so the smaller the payment the higher the real rate — which is why per-transaction pricing punishes businesses that bill little and often.

How do I invoice so an exact amount lands?

Add the fixed charge to your target and divide by one minus the percentage: (target + fixed) ÷ (1 − rate). Adding the percentage to the target instead always under-recovers, because the processor charges its percentage on the higher figure you end up billing.

Can I charge the customer the processing fee?

Sometimes. Surcharging rules vary by country, by card scheme and by card type, and several jurisdictions prohibit it outright on consumer cards. Confirm before it appears on an invoice — an unlawful surcharge normally has to be refunded, and the scheme rules apply regardless of what the customer agreed.

Are the rates in this tool current?

They are published standard rates shown with the date they were last checked, and they decay: processors change pricing, and your own rate may be negotiated, international or on a different tier entirely. Use the figure from your statement whenever you have one.

Do fees apply to refunds?

Commonly the percentage is returned and the fixed charge is not, though this varies by processor and has changed over time at several of them. A refunded payment is rarely cost-neutral, which is worth knowing before offering a full refund on a card transaction.

Is a payment link cheaper than sending an invoice?

The processing cost is the same; what differs is collection speed. A link removes the step where the customer has to initiate payment themselves, and getting paid a fortnight sooner is usually worth more than the fee difference between two processors.

Turn the answer into an invoice

The result above transfers straight into the invoice generator — dates, amounts and terms already filled in. Free, no account needed.

Open the invoice generator

Sources & further reading

Related

Invoice types

Published · General information, not legal, tax or financial advice.