Why Calculate Monthly UPI Costs?
Understanding your monthly UPI MDR cost helps with pricing decisions, cash flow planning and comparing payment methods. Even at 0.4%, MDR accumulates significantly at scale.
Step-by-Step Calculation
- Find your average transaction amount (divide monthly volume by number of transactions)
- Determine your merchant category (standard, essential, capital market, zero-MDR)
- Calculate per-transaction MDR using the applicable rate
- Multiply by number of monthly transactions
- Add GST on MDR if applicable (multiply MDR by 18%)
Example: ₹25 Lakh/Month Business
Monthly Volume: ₹25,00,000
Average Transaction: ₹5,000
Transactions: 500/month
Per-transaction MDR: ₹5,000 × 0.4% = ₹20
Monthly MDR: 500 × ₹20 = ₹10,000
GST on MDR: ₹10,000 × 18% = ₹1,800
Total Monthly Cost: ₹11,800
Net Settlement: ₹24,88,200
Average Transaction: ₹5,000
Transactions: 500/month
Per-transaction MDR: ₹5,000 × 0.4% = ₹20
Monthly MDR: 500 × ₹20 = ₹10,000
GST on MDR: ₹10,000 × 18% = ₹1,800
Total Monthly Cost: ₹11,800
Net Settlement: ₹24,88,200
Use the Monthly Calculator
Skip the manual calculation — use the Monthly UPI MDR Calculator to get instant results for any volume.
Open Monthly Calculator →Information verified as of 18 September 2026. View sources →