UPI Charges Calculator

Calculate UPI charges, MDR and GST for different transaction types. Check your total cost, ITC impact and net settlement for UPI payments.

UPI Charges & MDR Explained

From 15 October 2026, MDR applies to specified UPI merchant transactions above ₹2,000. For regular eligible P2M transactions, the standard MDR is 0.4%, with a maximum of ₹300 per transaction from ₹75,000 onwards.

P2P UPI payments remain free, while eligible small merchants and some specific payment categories have separate zero-MDR or special-rate rules. :contentReference[oaicite:1]{index=1}

UPI MDR Examples

For example, if a ₹10,000 payment falls under the standard 0.4% MDR category, the MDR is ₹40. The ₹300 cap is reached at ₹75,000. :contentReference[oaicite:2]{index=2}

Who Pays UPI MDR?

MDR is a merchant-side payment-processing charge. It is not an extra amount added to the customer’s normal UPI payment.

So, if a customer makes an eligible ₹10,000 UPI payment, the customer pays ₹10,000. If the applicable MDR is ₹40, that charge is handled within the merchant/payment ecosystem. Banks have also been advised that merchants should not pass the MDR on to customers. :contentReference[oaicite:3]{index=3}

GST on UPI MDR

GST and MDR are two different things. MDR is the payment-processing charge, while GST is the applicable tax on the taxable service or charge.

Where GST is applicable, it is calculated on the MDR/service charge rather than on the full UPI transaction amount. The Government has also clarified that GST is not a tax on the UPI payment itself. :contentReference[oaicite:4]{index=4}

Example: MDR + GST

*18% GST is used here as the calculator’s illustrative GST assumption where GST is applicable. Actual tax treatment depends on the applicable service, supplier and tax rules.

In this example, the ₹47.20 is the merchant-side MDR plus applicable GST. It does not mean the customer has to pay ₹10,047.20 through UPI.

What About ITC on GST?

A GST-registered business may be able to claim eligible GST paid on business-related services as Input Tax Credit (ITC), subject to the applicable GST rules and documentation requirements. :contentReference[oaicite:5]{index=5}

Using the same example, the ₹7.20 GST may be available as ITC to an eligible business. If the full amount is eligible for ITC, the effective cost after ITC would be ₹40.

ITC is not automatic. The business must meet the applicable GST conditions and have the required documentation. The example above assumes the entire GST amount is eligible for ITC.

UPI MDR Rates at a Glance

The rate depends on the type of transaction. For example, railways, telecom, insurance, fuel and certain other specified sectors have a flat ₹5 MDR above ₹2,000, while specified capital-market payments have a 0.02% rate subject to a ₹300 cap. :contentReference[oaicite:6]{index=6}

How Is UPI MDR Calculated?

For a regular eligible P2M transaction above ₹2,000, the basic calculation is:

MDR = Transaction Amount × 0.4%

The ₹300 maximum is then applied where the transaction reaches the applicable cap.

Other categories use different rates, which is why the calculator lets you select the payment type instead of applying 0.4% to every UPI transaction.

Important Note

This calculator is meant for estimation. The actual MDR, GST treatment and ITC available to a merchant can depend on the transaction category, merchant status, payment provider and applicable rules.

Sources

For the latest UPI information and circulars, refer to the official NPCI UPI Circulars. You can also check the latest information from the Ministry of Finance / Press Information Bureau and CBIC for GST-related rules.