Free tool · ZYRO

MDR calculator

See what accepting UPI and card payments really costs your shop each month: MDR, GST on fees and device rent.

Monthly sales by payment typeMDR %

UPI above ₹2,000 uses the 0.4% MDR announced by NPCI in September 2026. Its start has been put off until after Diwali, small merchants receiving up to ₹1 lakh a month by UPI QR are exempt, and it is capped at ₹300 for payments of ₹75,000 or more. Set it to 0 if it does not apply to you. Debit and credit card rates are samples: enter the rates from your bank or payment provider's agreement.

Total cost per month
₹3,009
Effective cost on sales
0.86%
MDR
₹2,250
Device rent
₹300
GST on fees
₹459
Cost per year
₹36,108
Saving if half the card sales came by UPI
₹903/month
Cost by payment type (per month)
Payment typeSalesMDR %MDRGST
UPI payments up to ₹2,000₹1,50,0000%₹0₹0
UPI payments above ₹2,000₹50,0000.4%₹200₹36
RuPay debit card₹20,0000%₹0₹0
Other debit cards₹50,0000.9%₹450₹81
Credit cards and UPI on credit₹80,0002%₹1,600₹288

How the calculation works

  • MDR: monthly sales for each payment type × its MDR %. The ₹300 cap on large UPI payments is not applied, so the UPI figure may be slightly high if you take payments of ₹75,000 or more.
  • GST: 18% on the total MDR and the device rent.
  • Total cost: MDR + device rent + GST.
  • Effective cost: total cost ÷ total sales × 100.

UPI payments up to ₹2,000 and RuPay debit cards carry zero MDR, and UPI above ₹2,000 is set to cost 0.4% once NPCI's new framework starts, which is still less than most card rates. Moving card sales to UPI lowers your cost. Read more in What is MDR and how is it charged and POS machine charges in India.

MDR calculator: questions

MDR, UPI, GST and payment costs.

MDR (merchant discount rate) is the fee a business pays to its bank or payment provider on each card or digital payment it accepts, usually a percentage of the amount.

UPI payments to a merchant up to ₹2,000 carry zero MDR, and so do RuPay debit cards. In September 2026 NPCI announced a 0.4% MDR on merchant UPI payments above ₹2,000, capped at ₹300 for payments of ₹75,000 or more, with lower flat rates for some sectors. Small merchants receiving up to ₹1 lakh a month through UPI QR stay exempt. The start, first set for 15 October 2026, has been put off until after Diwali.

Yes. GST at 18% is charged on the MDR and on other payment fees such as device rent, which adds to your total cost.

Add the MDR on every payment type, any device rent and the GST on these fees, then divide the total by your sales for the month. This calculator does this for you.

No. The debit and credit card rates are samples. Card MDR depends on the card type and your agreement, so enter the rates from your bank or payment provider.