Razorpay Fee Calculator

Rate by method, plus GST on the fee.

Calculate Razorpay fees by payment method including the GST charged on the fee itself.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these

Transaction amount

Payment method

GST on the fee

Transactions per month

Processor pricing varies by country, card type and whatever you negotiated, and it changes without much notice. Take the real figures from your own statement. These defaults are a starting point, not your account.

Razorpay fee including GST

₹118.00

2.36% of the transaction

Fee at 2%₹100.00

GST at 18% on the fee₹18.00

You receive₹4,882.00

Monthly fees₹141,600

GST is charged on the fee, not on the transaction, so the real cost is 2.36%, not 2%. It is reclaimable as input credit if you are GST registered, which most sellers are.

How the Razorpay Fee Calculator works

Razorpay's headline 2% is not the whole cost, GST is charged on the fee, adding 18% to it. And the method matters enormously: UPI carries no merchant discount rate under current rules, which is why it dominates Indian ecommerce volume.

Also known as: Razorpay charges · Razorpay MDR · Razorpay transaction fee India

Written out

Razorpay charges a percentage of the transaction value with no fixed component on standard domestic pricing, plus GST on the fee itself. Total cost = amount × rate × (1 + GST rate).

The GST on the fee is the part most often omitted. At an 18% GST rate a 2% headline becomes 2.36% in practice, and that is the number that belongs in a margin model.

Worked through

A ₹4,800 order at 2%: ₹96 of fee, plus 18% GST on the fee, ₹17.28. Total ₹113.28, an effective 2.36%.

International cards attract a higher rate, commonly 3%: ₹144 plus ₹25.92 of GST is ₹169.92, an effective 3.54%.

UPI on low-value transactions is the outlier, frequently carrying no merchant discount rate at all under the regulatory position on person-to-merchant UPI, which makes the payment method mix a larger lever in India than the rate negotiation is.

Where it goes wrong

GST charged on the processing fee is recoverable as input tax credit for a registered business, so the real cost is the base fee and the GST is a cash flow item. Treating the effective 2.36% as cost overstates it for anyone registered.

Settlement timing also varies by plan. Standard settlement is typically T+2 or T+3, and instant settlement carries its own charge, which is a financing cost rather than a processing one.

Making it useful

Separate the base fee from the GST in the margin model. One is cost and the other is recoverable, and the difference is a fifth of the total.

Then look at the payment method mix rather than only the rate. Shifting volume toward UPI where it carries no MDR does more for the blended cost than any percentage negotiation on cards.

Why the method mix dominates in India

India is unusual in having a high-volume payment rail with effectively zero merchant cost for person-to-merchant transactions. That makes the blended processing rate a function of what customers choose rather than what the processor charges.

A business at 70% UPI and 30% cards has a blended cost close to 0.7%; the same business at 30% UPI and 70% cards is near 1.7%. The rate card is identical in both cases.

The practical levers are therefore presentation rather than negotiation: which method appears first at checkout, which is pre-selected, and whether the card form is the path of least resistance. Those choices move the blended rate further than a processor conversation will, and they cost nothing to make.

Standard settlement cycles mean funds arrive days after the sale, and the instant settlement products carry their own percentage.

Used routinely that is a financing cost rather than a payment cost, and it is worth comparing against what a working capital facility would charge for the same two or three days rather than treating it as part of the processing rate.

A related point: receiving international payments requires the appropriate regulatory documentation, and the processing rate is only part of the cost of taking foreign payments into India.

Payment method matters more than the headline rate in India, because UPI transactions carry no merchant discount rate for most transaction types while cards do. A business with a high UPI share has a blended cost far below its card rate, and modelling on the card percentage alone will overstate payment costs substantially.

Where to go next

The Razorpay Fee question rarely arrives on its own. These are the ones that usually come with it:

GST Calculator India — Slabs, and the CGST/SGST split.
Payment Gateway Fee Comparison Calculator — Where a monthly fee starts paying for itself.
Cross-Border Payment Fee Calculator — What a foreign order really costs to accept.
Etsy Fee Calculator — Every Etsy fee on one sale, itemised.

Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.

Frequently asked questions

What does Razorpay charge?

Around 2% for domestic cards, netbanking and wallets, and around 3% for international cards. UPI person-to-merchant transactions carry no MDR under current rules. Rates are negotiable at volume.

Is GST charged on the fee?

Yes, at 18% of the fee, not of the transaction. A ₹100 fee becomes ₹118. If you are GST registered it is reclaimable as input credit, so the real cost returns to ₹100.

Why is UPI free for merchants?

Zero MDR on UPI person-to-merchant transactions is set by policy to drive digital payment adoption. It has been reviewed periodically, so confirm the current position for your merchant category.

When do I get the money?

Standard settlement is T+2 working days, with faster settlement available at an additional charge. Working out whether that charge is worth it is a cash-flow question, not a fee question.