Free tool: true transaction rate
True transaction rate calculator
The real percentage one card payment costs, once the pence per transaction and the authorisation fee are added to the card charge.
The same charges on other sale sizes
The smaller the sale, the more the fixed fees weigh.
Learn more
How this tool works
How is it worked out?
- Multiply the average transaction value by the card charge to get the card fee.
- Add the pence per transaction and the authorisation fee.
- Divide the total by the average transaction value and multiply by 100.
The formulaTrue transaction rate = (sale x card charge / 100 + pence per transaction + authorisation fee) / sale x 100
What does a worked example look like?
A consumer debit card at 0.60%, with 4p per transaction and a 4p authorisation fee.
- On a £10 sale
- £0.14 / £10 x 100 = 1.40%
- On a £1,000 sale
- £6.08 / £1,000 x 100 = 0.61%
Frequently asked questions
What is the true transaction rate?
It is the real percentage one card payment costs. The card charge, the pence per transaction and the authorisation fee are added up, divided by the size of the sale, and shown as one percentage.
Why does a small sale cost a higher rate?
Pence per transaction and authorisation fees are fixed amounts. On a £10 sale they are a big slice of the sale. On a £1,000 sale they barely register, so the true rate ends up close to the card charge.
Which figure should I enter as the card charge?
The percentage the provider charges on that card type. Use the drop down to pick the card type. Each card type remembers its own charge while you try the others.
Is the average transaction value the same as one sale?
It is the average sale size. The result is the rate on a sale of that size. The chart shows what the same charges come to on smaller and larger sales.
Is anything saved or sent?
No. The tool runs in your browser. Nothing you type is sent or stored, and the page opens blank every time.
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.