UPI Fee Calculator — Check MDR, Gateway & Wallet Charges
Instantly calculate UPI transaction fees for personal transfers, merchant payments, credit card on UPI, PPI wallets and payment gateways. Includes GST, net amount, who pays — and a bulk estimator for businesses.
Transaction Type
Sending money to a friend, family member or individual via UPI ID or phone number.
Fee Breakdown
| Payment Method | Fee | GST | Total Deduction | Net Received | Fee Bearer |
|---|
* Debit/Credit card MDR rates are indicative averages. Actual rates depend on card network, bank and merchant agreement.
📊 Monthly Volume Estimator — For Merchants & Businesses
Is UPI Really Free? The Complete Fee Guide for 2025
UPI is free for most Indians — but four specific scenarios attract fees that merchants, business owners and heavy wallet users must understand. Our calculator covers all of them with exact rupee amounts, GST breakdown and net-received figures.
When UPI Is Free (0% Fee)
Under NPCI and RBI guidelines, these transactions are permanently free:
- Person-to-Person (P2P): Any amount, any bank, any UPI app — ₹0 fee forever.
- Merchant Direct UPI (P2M): MDR waived since January 2020. Merchants receive the full amount when customers pay via UPI QR code or UPI ID without a payment gateway. Government compensates banks annually via an incentive fund.
- Loading Wallet from Bank Account: Adding money to Paytm, PhonePe Money or any PPI wallet from your bank is free.
- UPI Lite Transactions: All UPI Lite offline transactions (up to ₹500) — completely free.
When UPI Costs Money — 4 Real Scenarios
1. Payment Gateway MDR (Merchants)
If you accept UPI payments through Razorpay, Cashfree, Paytm PG, PhonePe Business or similar gateways, you pay the gateway's transaction fee on every order — typically 1.5%–2% + 18% GST. On ₹1,000: Razorpay takes ₹23.60 (₹20 fee + ₹3.60 GST), you receive ₹976.40. Our bulk estimator above shows your exact monthly and annual cost.
2. Credit Card on UPI — RuPay 1.1% Interchange
When customers pay using a RuPay credit card linked to UPI, the merchant bears a 1.1% interchange + 18% GST (effective 1.298%) on the transaction. The customer pays nothing extra. Non-RuPay credit cards (Visa, Mastercard) are not supported for standard UPI P2M payments.
3. Loading PPI Wallet from Credit Card
Adding money to Paytm Wallet or other PPI wallets using a credit card costs 2%–2.5% + GST charged by the wallet provider. This is not a UPI charge — it is a PPI loading fee. To avoid it, always load your wallet from your bank account (free).
4. Wallet-to-Merchant Payments
Paying a merchant using PPI wallet balance (not bank-linked UPI) may attract 0%–0.5% MDR + GST on the merchant side, depending on the wallet provider's policy. Wallet providers like Paytm and PhonePe have different thresholds — payments below ₹2,000 often have 0% MDR.
Payment Gateway UPI Fee Comparison
| Gateway | UPI Rate | GST (18%) | Effective Rate | On ₹10,000 |
|---|---|---|---|---|
| CCAvenue | 1.50% | 0.27% | 1.77% | ₹177 |
| Cashfree | 1.90% | 0.342% | 2.242% | ₹224.20 |
| Paytm PG | 1.99% | 0.358% | 2.348% | ₹234.82 |
| PhonePe Business | 1.99% | 0.358% | 2.348% | ₹234.82 |
| PayU | 1.99% | 0.358% | 2.348% | ₹234.82 |
| Razorpay | 2.00% | 0.36% | 2.36% | ₹236 |
| Instamojo | 2.00% | 0.36% | 2.36% | ₹236 |
Rates are published standard rates as of 2025. High-volume merchants can negotiate lower rates. All rates exclude service tax disputes — consult your gateway agreement.
Merchant tip: If you collect payments in-person (retail, restaurant, services), use direct UPI via a QR code — it is 100% free with zero MDR. Only use a payment gateway if you need online checkout, subscription billing, or multi-currency support. The gateway fee is worth paying only for online businesses.
Fee data sourced from NPCI circulars, official gateway published rates, and RBI guidelines. Last verified Jun 2026 by BankZop Editorial Team. Gateway rates may change — verify with your gateway before financial decisions.
