Free tool: effective rate calculator
What is this merchant really paying?
The effective rate is the real percentage of a merchant's card turnover that goes on fees, every charge included. Enter the figures from their statement to find it.
Runs in your browser. Nothing you type is sent or stored.
Learn more
How this tool works
How do you use it?
- Add up every fee on the merchant's statement: percentage fees, per-transaction fees, monthly fees, terminal rental, PCI and any tax charged on the fees.
- Take the card turnover for the same month and subtract refunds.
- Divide the fees by that net turnover and multiply by 100.
The formulaEffective rate = total fees / (card turnover minus refunds) x 100
What does a worked example look like?
The tool opens with this example, in pounds.
- Fees
- £312.40
- Card turnover
- £18,400
- Refunds
- £250
- Transactions
- 760
- Quoted rate
- 1.40%
- Extra terminal
- £25
- What the merchant really pays
- 1.86%
- What each card transaction costs the merchant
- £0.41
- The merchant pays more than they were quoted
- £58.30 extra this month
Which mistakes should you avoid?
- Leaving out monthly and one-off fees, which makes the merchant's rate look lower than it is.
- Using total sales including cash, when fees only apply to card turnover.
- Comparing two months with very different turnover, because fixed fees move the rate.
Frequently asked questions
What is a good effective rate?
It depends on the merchant's card mix, average transaction value and country. Compare their rate across months and against quotes on the same turnover, not against a single number.
Should the fees include tax?
Use what the merchant actually pays. If tax is charged on the fees, include it, and say so when you compare with another quote.
Why is the effective rate higher than the rate the merchant was quoted?
Because the quoted rate usually leaves out per-transaction fees, monthly fees and extras. The effective rate adds them all in.
What if the merchant is thinking of adding a terminal?
Enter its monthly cost in the optional extra terminal field. The highlighted rate then includes it, and the note shows what the rate is without it.
Does this tool save the figures?
No. It runs in your browser and nothing is sent or stored, apart from your chosen currency.
These tools give illustrations based on the numbers you enter. They are not quotes, financial advice or legal advice. Check any offer with the provider in writing.
Want the whole statement worked out?
The free calculator handles every card type, every fee and a side-by-side with an offer, and builds a quote PDF.