Payment fee versus rewards calculator
Payment fee vs. rewards calculator.
When a supplier charges a card payment fee, compare the dollar cost with the cash back. The rewards percentage alone does not answer the question.
Do the rewards cover the payment fee?
Change the example below. Your numbers stay in this browser and are not sent to our analytics.
Use numbers without commas, with at most two decimal places. Amounts may be $0–$1,000,000; rates may be 0–100%.
Extra cost after rewards
$50.00
- Processing fee
- $150.00
- Charged to the card
- $5,150.00
- Cash-back value
- $100.00
- Net cost after rewards
- $5,050.00
- No-fee payment cost
- $5,000.00
On these numbers, the rewards do not cover the fee.
What this estimate assumes
The alternative payment has no fee. The percentage processing fee is added to the invoice. Rewards are cash back, with no cap or redemption reduction. The checkbox determines whether the fee earns rewards too. Fees and rewards are rounded to cents. Interest, other fees, tax effects and the value of payment timing are excluded.
These are hypothetical examples, not current card offers. Check the payment provider’s and card issuer’s terms.
A text file with your numbers, result and assumptions. Created on this device.
Check which amount earns rewards.
On a hypothetical $5,000 invoice, a 3% fee adds $150. At 2% cash back, the reward is $100 if only the invoice earns it, or $103 if the full $5,150 charge earns it. Either way, the fee is larger than the reward.
Invoice + payment fee − cash back = net card cost.
The calculator assumes the fee is added as a percentage of the invoice. It does not cover a processor that divides the invoice by one minus the fee rate, charges a minimum fee, or adds a flat fee. Compare those charges separately. Carrying the balance, a cash discount or a bank-transfer charge can also change the result.