MDR Calculator

MDR, or merchant discount rate, is the fee a merchant pays to accept a digital payment. It is usually a percentage of the transaction value, sometimes with a flat fee on top, and it is deducted before the money settles into the merchant's account. GST applies on the MDR itself.

MDR inclusive means the amount you entered is what the customer pays, and the MDR comes out of it, so you receive less. MDR exclusive means the amount you entered is what you want to receive, so the charge is grossed up to cover the MDR and its GST. Use exclusive when you need a specific figure to land in your account.

Up to ₹2,000 there is none, and RuPay debit stays at zero by regulation. From 15 October 2026, UPI merchant payments above ₹2,000 attract 0.4% MDR, charged on the full transaction value and capped at ₹300. UPI Autopay and other recurring mandates are exempt, as are merchants receiving under ₹1 lakh a month through UPI QR.

Steer customers toward the rails that stay free — UPI at or below ₹2,000, RuPay debit and UPI Autopay mandates — and negotiate your card rate with your acquirer once your volume justifies it. Because the ₹2,000 threshold is per transaction, keeping individual UPI collections under it avoids the 0.4% entirely; the linked QR splitter breaks a larger total into sub-threshold QR codes.

Yes. GST at 18% is charged on the MDR itself, not on your sale or on the UPI transaction. The calculator shows it as a separate line so you can see the full cost of collection, and GST-registered businesses can generally claim it as input tax credit.

The list has UPI merchant payments, UPI Autopay mandates, RuPay debit, UPI through a wallet, credit card on UPI, non-RuPay debit cards, credit cards, net banking and Amex or international cards, plus a custom option. Each fills in a typical rate, such as 0.9% for non-RuPay debit, 2% for credit cards and 1.8% for net banking. Treat these as starting points and overwrite them with the rate on your own agreement.

The exact gross-up rarely comes to whole paise: receiving ₹10,000 on a 2% card with 18% GST needs a charge of about ₹10,241.704. A charge has to be in whole paise, and the fee and its GST are each rounded to the paisa, so the calculator rounds the charge up rather than down. Here it charges ₹10,241.71 and ₹10,000.01 settles to you, so you never land below your target.

It is the total deducted, meaning the MDR plus the GST on it, as a percentage of what the customer paid. A 2% card rate works out to 2.36% once 18% GST is added. A flat per-transaction fee pushes the figure higher on small payments, and a capped payment method pushes it lower on large ones, which makes it a fairer number than the headline rate for comparing payment methods.

The rate you type is used, but the UPI preset's ₹2,000 free threshold and ₹300 cap keep applying, because they belong to the payment method rather than the rate. That lets you test a different negotiated rate under the same rules. If you want a plain percentage with no threshold or cap, choose Custom rate from the payment method list and enter your own figure.