UPI Charges Calculator for Merchants

It was announced on 15 September 2026 and takes effect on 15 October 2026. Until that date the existing zero-MDR treatment for bank-account UPI continues, so results in this calculator are a preview of charges under the new framework rather than charges you are paying today. Consumers are not charged this MDR at any point, and UPI apps are not permitted to levy a platform fee on UPI payments.

Rs 20, leaving Rs 4,980 before any other charges your provider may apply. The rate is 0.4% of the full transaction amount once the payment is above Rs 2,000, not 0.4% of the portion above Rs 2,000. The worked examples published with the framework follow the same rule: Rs 3,000 gives Rs 12 and Rs 50,000 gives Rs 200.

Yes. For standard P2M treatment the MDR is capped at Rs 300 per transaction from Rs 75,000, so a Rs 1 lakh payment is estimated at Rs 300 rather than the Rs 400 a flat 0.4% would give. Capital-market transactions share the same Rs 300 maximum, but because their rate is 0.02% that maximum is only reached at about Rs 15,00,000. The two thresholds are different and this calculator reports whichever one applies to the treatment you selected.

Only if your bank or payment provider classifies you as a P2M merchant. Merchants classified under P2PM, broadly those receiving up to Rs 1 lakh a month through qualifying UPI QR arrangements, retain zero MDR even on an individual payment above Rs 2,000, because the exemption attaches to the merchant account rather than to each transaction. Classification is decided by your acquiring bank or payment provider, not by the size of one payment, so select the P2PM option only if you are already classified that way. Where monthly receipts exceed the threshold for three consecutive months, providers may transition a merchant from P2PM to P2M.

The framework names railways, telecom services, insurance and fuel as categories where a flat Rs 5 per transaction applies above Rs 2,000, and describes qualifying public utility collection such as electricity distribution, municipal water charges and piped natural gas the same way. The difference is large on big tickets: a Rs 40,000 payment would be Rs 160 at the standard rate and Rs 5 under the flat treatment. Not every business that sounds like a utility or public service automatically qualifies, so confirm your own category with your acquiring bank.

Education fee collection is described as falling under the industry programme category and benefiting from flat-fee or capped processing rather than the percentage rate, but the published FAQ does not state an exact figure for it the way it does for railways, telecom, insurance and fuel. This calculator therefore does not assume education is exactly Rs 5. If you collect school or university fees, confirm the applicable flat or capped rate with your acquiring bank or the current NPCI or DFS circular before budgeting for it.

No. The framework states that onboarded merchants cannot pass MDR on to customers when accepting UPI, and that customers pay only the posted price. A surcharge at the counter or an extra line on the invoice is outside the framework, so the charge is a cost of acceptance in the same way card MDR already is.

Because in standard treatment the rate applies to the whole amount once the payment is above Rs 2,000, not only to the excess. A Rs 2,000 payment carries no MDR, so Rs 2,000 remains. A Rs 2,001 payment attracts about Rs 8, leaving about Rs 1,993. The break-even sits a little above Rs 2,008, so Rs 2,009 is the first whole rupee amount that clearly nets more than Rs 2,000. The calculator computes that boundary from the active rate and flags any amount inside the band, including the wider band that results if you switch the GST estimate on. It only matters for prices set close to the threshold.

The published framework does not address GST, so this calculator leaves the GST option off by default and labels it an estimate when enabled. Where GST does apply it is charged on the MDR or service fee itself, not on the customer payment, and the actual billing and tax treatment depend on your acquiring bank or payment provider. Input tax credit eligibility depends on GST registration, a valid tax invoice, business use and other applicable GST conditions, so verify the position with your accountant or tax adviser rather than assuming it from this estimate.

No, both are treated separately. Credit-linked UPI products such as RuPay credit cards linked to UPI and pre-sanctioned credit lines follow their own credit-product rules rather than this MDR, because the funds are short-term credit from the issuing bank rather than a direct account-to-account transfer. Recurring UPI mandates and AutoPay have separate treatment under the announced framework. If most of your collections are mandate-based or credit-linked, this calculator will overstate what changes for you.

Enter a typical payment amount and how many payments of that size you take in a month. The calculator applies any cap to each transaction and then totals the month, which is the correct order: adding a month of takings together and applying one Rs 300 cap would understate the cost heavily. The shape of your takings matters more than the total, because fifty payments of Rs 3,000 and one payment of Rs 1,50,000 collect the same amount for very different charges, and anything at or below Rs 2,000 remains free. Run the estimate for your two or three most common ticket sizes rather than an average.