UPI MDR calculator
Type a UPI payment amount to see the merchant discount rate (MDR) on it, the GST on that fee, and what reaches your bank.
NPCI rule. Starts after Diwali, date to be notified
Uses the standard rate for merchant (P2M) payments: 0.4% above ₹2,000, capped at ₹300. Some categories pay less; see below.
| Payment | MDR | GST at 18% | Reaches you |
|---|---|---|---|
| ₹2,000 | No MDR | ₹0.00 | ₹2,000.00 |
| ₹3,000 | ₹12.00 | ₹2.16 | ₹2,985.84 |
| ₹12,400 | ₹49.60 | ₹8.93 | ₹12,341.47 |
| ₹50,000 | ₹200.00 | ₹36.00 | ₹49,764.00 |
| ₹75,000 | ₹300.00cap | ₹54.00 | ₹74,646.00 |
| ₹1,00,000 | ₹300.00cap | ₹54.00 | ₹99,646.00 |
How the MDR is worked out
A payment of ₹2,000 or less pays no MDR. Above ₹2,000, the fee is 0.4% of the payment, rounded to the paisa. The fee stops at ₹300, which a payment reaches at ₹75,000, so a ₹1,00,000 payment pays ₹300 instead of ₹400.
Banks and gateways add GST at 18% on the fee. For a ₹12,400 payment that is ₹49.60 of MDR and ₹8.93 of GST, ₹58.53 in all. What reaches you is the payment less both.
When the MDR starts
The government published the MDR rules on 15 Sept 2026, for payments from 15 Oct 2026. On 13 Oct 2026 NPCI deferred the start to after Diwali 2026, on a date NPCI has not yet notified. Until then UPI merchant payments carry no MDR. No change to the rate or the cap has been announced.
Read UPI MDR charges explained for what was announced and who pays nothing.
Payments this calculator does not cover
These payments pay a different MDR, or none, under the NPCI rules:
- Small merchants on the P2PM plan, who receive up to ₹1 lakh a month by UPI QR into their own bank account, pay no MDR.
- Railways, telecom, insurance, fuel and utility bills pay a flat ₹5 per payment above ₹2,000. School and college fees also get a lower rate.
- Mutual funds, stockbrokers and other capital market payments pay 0.02%, capped at ₹300.
- AutoPay mandates, such as subscriptions and recurring bills, pay no MDR.
- RuPay credit cards and credit lines on UPI follow card rules, not this rate.
- Money sent to a person (P2P) is always free, whatever the amount.
Check what was actually deducted
A calculator tells you what one payment should cost. Your settlement report tells you what was taken. Follow how to check the MDR deducted from your settlements, or let Settlement Helper read the reports for you and flag any payment where the fee looks wrong.
Questions
- How much is UPI MDR on ₹5,000?
- 0.4% of ₹5,000 is ₹20, plus GST at 18% (₹3.60), so ₹23.60 in all once the MDR starts.
- Is there MDR on UPI payments of ₹2,000 or less?
- No. A payment of ₹2,000 or less pays no MDR. Above it, the fee is 0.4% of the whole amount, not only the part above ₹2,000.
- What is the most MDR one UPI payment can cost?
- ₹300 plus GST. Any payment of ₹75,000 or more pays exactly ₹300.
- Is UPI MDR being charged now?
- Not yet. NPCI deferred the start on 13 Oct 2026 to after Diwali 2026, on a date NPCI has not yet notified.
- Can I add the MDR to the customer’s bill?
- No. The NPCI rules say merchants cannot pass the MDR on to the customer. The customer pays the listed price.