Smart Business Math

Fee Pass-Through Calculator

Enter the amount you want to keep after processing fees. See how much to charge so Stripe, PayPal, or Square fees are covered.

Calculator

Your intended price or payout before processing fees.

Results

Charge the customer

$103.30

Estimated processing fee

$3.30

You keep (net)

$100.00

Price uplift

$3.30

3.19% effective rate on the charged amount

What this means

Charging extra to cover fees raises the sticker price (see uplift in results). Check card-network and local rules before adding surcharges.

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Fee Pass-Through Summary

Processing fees are taken from the charged amount, not from your desired net alone. This calculator reverse-engineers the gross price so you keep your target net after a percent + fixed fee schedule.

Explanation

Charge the customer is the gross amount that, after fees, leaves you with your target net.

Estimated processing fee is what the processor keeps on that gross charge.

Price uplift is how much higher the charge is than your intended net—useful for comparing schedules.

Business implication: if you forget to reverse the percentage, you under-recover fees on every sale.

Step-by-step example

You want to keep $100.00 after Stripe’s 2.9% + $0.30:

  1. Charge = ($100.00 + $0.30) ÷ (1 − 0.029) ≈ $103.30
  2. Fee ≈ $3.30
  3. You keep ≈ $100.00

Simply adding $3.20 to $100 would undershoot because the percentage also applies to the uplift.

Formula

Charge = (Desired Net + Fixed Fee) ÷ (1 − Percentage Rate)

Fee = Charge − Desired Net

Uplift = Charge − Desired Net

Helpful tips

  • Prefer baking fees into list prices over surprise line-item surcharges when rules are unclear.
  • Higher fixed fees (e.g. PayPal) require more uplift on small nets.
  • Re-check after changing processors—the pass-through amount changes with the schedule.

FAQ

What does fee pass-through mean?

Fee pass-through means raising the amount you charge so that after the processor takes its percentage and fixed fee, you still receive the net amount you intended (your product price or desired payout).

Is it legal to add a card surcharge?

Rules differ by country, state, and card network. Some places allow surcharges with disclosure limits; others restrict them. This calculator shows the math only—it is not legal advice. Confirm local rules before adding line-item fees.

Why isn’t charge just net plus the fee on the net?

Because the percentage fee applies to the full charged amount. If you only add fee(net), the percentage on the uplift is missing. The correct reverse formula is Charge = (Net + Fixed) ÷ (1 − Percent).

How accurate is this calculator?

It uses standard US percent + fixed schedules for Stripe, PayPal, and Square as baselines. Your live processor rate may differ. Always verify official pricing.

Related tools

Key terms

Fee pass-through

Definition. Raising your price (or adding a fee) so the customer covers some or all of the processing cost.

In simple terms. If you need a target net after fees, you invoice a higher amount. Rules for surcharges and convenience fees vary by card network and location—check before adding line-item fees.

Invoice for target net ≈ (target net + fixed fee) ÷ (1 − rate)

Example. To keep about $100 after 2.9% + $0.30, you typically need to invoice a bit more than $100.

Common mistake. Adding a surcharge where it is restricted, or forgetting currency and cross-border fees.

Related calculators. Fee Pass-Through Calculator

Related terms. Processing fee, Net payout

Processing fee

Definition. The amount a payment processor charges to accept a card or digital payment.

In simple terms. Most online processors charge a percentage of the payment plus a fixed per-transaction amount. The fee is how the processor gets paid for authorization, settlement, fraud tools, and payouts.

Fee ≈ (rate × transaction amount) + fixed fee

Example. On a $100 charge at 2.9% + $0.30, the fee is about $3.20 and you keep about $96.80 (before refunds or chargebacks).

Common mistake. Comparing only the percentage rate and ignoring the fixed fee—or assuming every payment method uses the same rate.

Related calculators. Stripe Fee Calculator, PayPal Fee Calculator, Square Fee Calculator, Processor Comparison Tool

Related terms. Net payout, Effective rate, Fee pass-through

Net payout

Definition. What you actually receive after processing fees are deducted from a payment.

In simple terms. Customers pay the invoice amount; the processor keeps its fee; the remainder is your net. Pricing and cash-flow decisions should use net, not the sticker invoice total.

Net payout = invoice amount − processing fee

Example. Invoice $250, fee $7.55 → net payout ≈ $242.45.

Common mistake. Planning expenses from the full invoice amount and discovering shortfalls after fees clear.

Related calculators. Stripe Fee Calculator, Fee Pass-Through Calculator

Related terms. Processing fee, Effective rate, Fee pass-through

Effective rate

Definition. Total processing cost as a percentage of the payment amount.

In simple terms. Because of fixed per-transaction fees, small payments often have a higher effective rate than large ones—even at the same posted rate.

Effective rate = processing fee ÷ payment amount

Example. A $3.20 fee on $100 is a 3.2% effective rate. The same structure on a $20 charge is a much higher effective rate.

Common mistake. Using the advertised percentage alone when comparing processors or pricing low-ticket items.

Related calculators. Stripe Fee Calculator, Processor Comparison Tool

Related terms. Processing fee, Net payout

See all terms in the Glossary →

Notes & Assumptions

Schedules use the same US baselines as our Stripe, PayPal, and Square fee calculators. Confirm live rates with each provider before pricing decisions.

Last reviewed: July 2026