Merchant Fees Savings Estimator

Estimate savings from reducing merchant fees using volume and effective rate.

Educational only. Validate assumptions with your processor statements and contract fee tables.

Processed in-browser. Nothing is stored.

Inputs

Total card volume processed per month

All-in fees paid per month (blended)

Target improvement

1 bps = 0.01% (e.g., 20 bps = 0.20%)

All-in effective rate

Used for break-even calculation

Results

Enter inputs and click Calculate.

How to Use

  1. Use your processor statement to find monthly volume and total fees.
  2. Choose either a bps reduction target or a target effective rate.
  3. Optionally add a one-time switching cost to compute simple break-even.
  4. Calculate, then copy the summary for negotiation or sourcing work.

What Results Mean

Effective rate is all-in fees divided by processing volume.

Monthly savings is current fees minus target fees.

Break-even estimates how long savings take to cover a one-time switching cost.

Common Pitfalls

  • Using partial fees instead of all-in fees (interchange, assessments, markup, and monthly charges).
  • Comparing rates across different mixes of card types and transaction channels.
  • Ignoring contract terms like minimums, PCI fees, and equipment or gateway costs.

Change log

v1.0 (2026-01): Latest release