# How Much Should I Charge to Receive $X?

URL: https://www.paydude.io/resources/tools/charge-to-receive-calculator
Type: Free interactive calculator
Summary: Want exactly $100 after processing fees? Charge $103.30. Work out the amount to invoice so the payout lands on the number you need.

There is a trap here. Adding the fee percentage to the amount you want does not work, because the fee is charged on the larger, marked-up amount as well — so you still come up short.

## Summary

To net $100 at 2.9% + 30¢, charge $103.30 — not $103.20. Adding the percentage on top always undershoots, because the fee applies to the markup too. The correct formula divides rather than adds: (target + fixed) ÷ (1 − rate). The gap grows with the amount: on $10,000 the naive method leaves you about $9 short.

## Why adding the percentage does not work

Suppose you want to receive $100 and your rate is 2.9% + 30¢. The obvious move is to add 2.9% and the 30¢, and charge $103.20. But the processor takes its cut of $103.20, not of $100 — so the fee is $3.29, and you receive $99.91.

You are short by roughly 2.9% of the markup itself. The error is small on small amounts and grows in step with the invoice.

## The correct formula

```text
charge = (amount you want + fixed fee) / (1 - percentage rate)

       = (100 + 0.30) / (1 - 0.029)
       = 100.30 / 0.971
       = 103.30
```

Dividing by `1 − rate` accounts for the fee being taken from the grossed-up total, which is exactly what adding the rate fails to do.

**What to charge at 2.9% + 30¢**

| You want to receive | Charge | Fee |
| --- | --- | --- |
| $25 | $25.95 | $0.95 |
| $50 | $51.80 | $1.80 |
| $100 | $103.30 | $3.30 |
| $500 | $515.76 | $15.76 |
| $1,000 | $1,030.69 | $30.69 |

## When you actually need this

- **Freelance and agency invoicing**, where a contract specifies a net figure
- **Marketplace payouts**, where a seller is promised a specific amount
- **Reimbursements and pass-through costs**, which must arrive whole
- **Deposits and retainers** quoted as a round number

> **Check before you gross up:** Passing processing fees to customers is restricted in some jurisdictions and by some card network rules, particularly for consumer transactions. Building the fee into your price is generally fine; presenting it as a separate surcharge often is not.

**Smaller fees, smaller markup** At 2.6% + 25¢ you charge $102.98 to receive $100 instead of $103.30. — [Compare rates](https://www.paydude.io/pricing)

## Frequently asked questions

### Why not just add the fee percentage to the price?

Because the fee is charged on the total you actually bill, including the markup you just added. Adding 2.9% to $100 gives $103.20, but the processor takes 2.9% of $103.20 — so you receive $99.91, not $100. Dividing by (1 − rate) is the only way to land exactly on target.

### Is it legal to pass processing fees to customers?

It depends on where you are and what you are selling. Surcharging is restricted or banned in several US states and many countries, and card network rules add their own conditions. Building the cost into your headline price is almost always acceptable; adding a visible surcharge at checkout often is not. Check your local rules.

### Does this work for refunds?

No. Most processors do not return the fixed fee on a refund, and some keep the percentage as well, so a full refund typically leaves you out of pocket by the original fee. Grossing up does not recover that.

### What about international cards?

Add the international surcharge to the percentage before calculating. At 2.9% plus a 1.5% cross-border fee, use 4.4% as the rate — otherwise the payout will fall short on exactly the transactions where the gap is biggest.