Payment processing fees
Payment processing fees definition for SaaS and AI founders: what it means, how to calculate it, and common pitfalls when reading it in dashboards.
Payment processing fees are charged by providers like Stripe on each payment — typically a percentage of the amount plus a fixed fee, with extra for international cards and currency conversion.
Formula
Fee = Amount × Rate % + Fixed fee
In practice
For most SaaS, payment fees belong in COGS. Estimate yours with the Stripe fee calculator.
Related terms
Related
- ARPAAverage MRR per paying customer.
- ARRAnnualized recurring revenue: MRR multiplied by twelve.
- CACSales and marketing spend per new customer.
- ChurnCustomers or recurring revenue lost in a period.
- COGSThe direct cost of delivering your product to existing customers.
- Contribution marginRevenue minus all variable costs, including variable sales costs.
See your real margin in five minutes.
Connect Stripe and your cost providers with read-only access. Free for two connections — no card required.