GrossupHow much to charge to cover credit card fees
Divide, don't add. To receive $5,000.00 after 2.9% + $0.30, invoice $5,149.64. Adding 2.9% and $0.30 gives $5,145.30, which leaves you $4,995.79: $4.21 short.
Stripe US card: 2.9% + $0.30.
- Fees on this payment$149.64
- You receive$5,000.00
- Fees as a share of the invoice2.91%
If you add the percent instead: invoice , receive , short.
The numbers, worked
The processor takes its percent of the whole invoice, including the part you added to cover the fee. Add 2.9% and $0.30 to $5,000.00 and you invoice $5,145.30; the fee on that is $149.51, so $4,995.79 lands.
The amount that lands exactly is (what you want + fixed fee) ÷ (1 − percent): ($5,000.00 + $0.30) ÷ 0.971 = $5,149.64. Its fee is $149.64, and you receive $5,000.00.
The gap grows with the rate and the invoice, which is why the calculator shows what adding the percent would leave next to the exact amount.
Questions
What is the formula?
Invoice = (amount you want + fixed fee) ÷ (1 − percent fee as a decimal). At 2.9% + $0.30 that is (amount + 0.30) ÷ 0.971.
Can I put the fee on its own line?
Some processors and places limit adding a fee to a client's bill, so check the rules that apply to you. Folded into your price or shown as a line, the amount to invoice is the same.
How do I find my processor's rate?
Your processor's pricing page or a recent payout shows it. The buttons above fill in Stripe's, PayPal's and Square's published card rates for invoices.
Related
- Grossup: what to invoice to receive any amount
- Stripe fee calculator
- 3 percent fee calculator
- Hourly rate after card fees
Sending this every month? The card fee invoice template puts the fee line on each invoice.