What it costs you in a month
An estimate for the month, and for the year.
Average ticket size—
Worked out from the two figures above
Leave it blank if you do not know - we will assume a figure and say clearly that it is an assumption
Enter your monthly UPI turnover.
Roughly 96% of merchant UPI transactions are expected to stay at or below Rs 2,000 and therefore attract no MDR at all. The ₹300 cap keeps even your largest payment limited.
MDR cannot be worked out from an average ticket. A shop averaging ₹800 may still take ten ₹40,000 payments a month, and only those ten cost anything. That is why we count above-threshold and below-threshold transactions separately.
Threshold: ₹2,000
How to use this
- In "Monthly UPI turnover", type how many rupees came in over UPI last month - for example 500000.
- In "Number of UPI transactions", type how many times money came in - for example 1000. The average ticket appears on its own.
- If you know it, fill in how many of those were above ₹2,000. If you do not, leave it blank.
- Three figures appear below - the monthly fee, the yearly fee, and what share of your collections that is.
- Do read "What we have assumed" - it says plainly which figures are yours and which are our assumption.
A worked example
An electronics shop takes ₹12,00,000 a month over UPI across 300 transactions, and knows 200 of them were above ₹2,000. Filling that in shows a monthly fee of about ₹4,400 - 0.367% of collections - and ₹52,800 over a year. Depending on how the money really splits between small and large payments, it falls between ₹4,000 and ₹4,800.
How this is calculated
The rate and the thresholdFAQ question FAQ Q26
0.4% of the full transaction amount, on P2M transactions above Rs 2,000. The Rs 2,000 is a threshold, not a deduction - a Rs 5,000 payment is charged on all Rs 5,000.
The per-transaction capFAQ question FAQ Q32
MDR is capped at Rs 300 per transaction. Because 0.4% of Rs 75,000 is exactly Rs 300, the fee stops growing at Rs 75,000 and stays Rs 300 however large the payment is.
Our default assumptionNot confirmed yet
Roughly 96% of merchant UPI transactions are expected to stay at or below Rs 2,000 and therefore attract no MDR at all. When you do not enter the count yourself, we use that 96% figure and label the result as an assumption.
Why not just use the averageFAQ question FAQ Q26
MDR cannot be worked out from an average ticket. A shop averaging ₹800 may still take ten ₹40,000 payments a month, and only those ten cost anything. That is why we count above-threshold and below-threshold transactions separately.
Read the official NPCI/DFS FAQMerchant Discount Rate (MDR) on Select UPI (P2M) Transactions - Frequently Asked Questions — NPCI / Department of Financial Services (DFS), Ministry of Finance
Read the full explainer
How much will UPI MDR cost my business? Worked scenarios for a kirana, a restaurant and a pharmacy
What UPI MDR adds to a month's costs, worked through for a kirana, a restaurant and a pharmacy - counting payments above ₹2,000, not averaging.