Affirm Fee Calculator
How to Use This Calculator
- 1
Enter Your Order & Fee Details
Input your average order amount, Affirm's merchant fee rate (typically 2-8%), and your estimated monthly order volume through Affirm.
- 2
Review Your Results
The calculator displays Net Per Order, Affirm Fee Per Order, Net Revenue Retained %, Monthly Fee Total, Monthly Net Revenue, and Annual Fee Cost. The Insights card compares BNPL vs. credit card costs, shows annual impact, and checks your margin retention.
Example Calculation
An e-commerce merchant processing 100 Affirm orders per month at $500 average order value wants to understand their fee impact.
Order Amount
$500
Affirm Fee Rate
5%
Monthly Order Volume
100
Results
Net Per Order
$475.00
Affirm Fee Per Order
$25.00
Net Revenue Retained
95.00%
Monthly Fee Total
$2,500.00
Monthly Net Revenue
$47,500.00
Annual Fee Cost
$30,000.00
Tips
Negotiate Your Fee Rate at Volume
In the example, dropping from 5% to 4% saves $5/order — that's $6,000/yr across 1,200 annual orders. High-volume merchants (500+ orders/mo) often qualify for rates as low as 3-4%.
Compare BNPL Premium to Sales Lift
At 5%, Affirm costs $25/order vs. ~$14.80 for credit cards (2.9% + $0.30). The $10.20 premium per order requires a ~2% sales lift to break even. Track whether Affirm actually drives incremental conversions.
Monitor Retention Rate
The example shows 95% retention — solid for BNPL. If your product margins are under 30%, even a 5% fee rate can significantly impact profitability. Consider whether BNPL drives enough incremental sales to justify the cost.
The Affirm Fee Calculator shows merchants the true cost of offering Buy Now, Pay Later.
With a $500 average order at 5% fee rate and 100 monthly orders, Affirm deducts $25 per order — you keep $475 (95% retention).
Monthly fees total $2,500 ($30,000/yr).
By comparison, credit card processing on the same order costs ~$14.80 (2.9% + $0.30), making the BNPL premium $10.20 per order.
The Affirm Fee Calculation
The calculator determines your net proceeds by subtracting the percentage-based fee from each order amount, then scaling to monthly and annual totals.
Fee Per Order = Order Amount x (Fee Rate / 100)
Net Per Order = Order Amount - Fee Per Order
Revenue Retained = (Net Per Order / Order Amount) x 100
Monthly Fee Total = Fee Per Order x Monthly Order Volume
Monthly Net Revenue = Net Per Order x Monthly Order Volume
Annual Fee Cost = Monthly Fee Total x 12
Affirm's merchant fee typically ranges from 2% to 8% depending on your agreement, industry, and volume.
Higher-volume merchants can negotiate lower rates.
Worked Example: Projecting Affirm Costs for an E-commerce Store
A furniture retailer processing orders through Affirm wants to understand the fee impact.
Inputs:
- Order Amount: $500
- Affirm Fee Rate: 5%
- Monthly Order Volume: 100
Step-by-step:
- Fee Per Order: $500 x 0.05 = $25.00
- Net Per Order: $500 - $25 = $475.00
- Revenue Retained: $475 / $500 = 95.00%
- Monthly Fee Total: $25 x 100 = $2,500.00
- Monthly Net Revenue: $475 x 100 = $47,500.00
- Annual Fee Cost: $2,500 x 12 = $30,000.00
At $30,000/yr in fees, this merchant needs Affirm to generate at least $30,000 in incremental revenue (about 60 additional $500 orders per year) to break even on the BNPL premium over credit cards.
BNPL Fee Benchmarks for Merchants
Understanding where your rate falls relative to industry benchmarks helps you negotiate effectively:
- 2-3% fee rate (97-98% retention): Excellent — typically reserved for high-volume merchants (1,000+ orders/mo). At this rate, the $500 order costs only $10-$15 in fees.
- 3-5% fee rate (95-97% retention): Good — standard for established merchants. The example's 5% / 95% retention is at the lower end of this range.
- 5-6% fee rate (94-95% retention): Average — common starting rate for new merchants. Worth negotiating down as volume grows.
- 6-8% fee rate (92-94% retention): High — typical for high-risk categories or low-volume merchants. At 8%, the $500 order costs $40 in fees vs. ~$14.80 for credit cards.
Credit card processing (2.9% + $0.30) remains the cheapest payment method.
The BNPL premium is justified only if it drives measurably higher conversions and order values.
Frequently Asked Questions
How much does Affirm charge merchants per transaction?
Affirm charges a percentage-based merchant fee, typically 2-8% of the order value. In the example with a $500 order at 5%, the fee is $25 per order. The actual rate depends on your agreement, industry, and volume. High-volume merchants can negotiate rates as low as 3-4%. Unlike credit cards, Affirm generally doesn't add a fixed per-transaction fee on top.
How do Affirm fees compare to credit card processing fees?
Affirm fees are significantly higher than credit card fees. In the example, Affirm charges $25 per $500 order (5%), while credit card processing would cost roughly $14.80 (2.9% + $0.30) — a $10.20 premium per order. Over 100 monthly orders, that's $1,020/mo more than credit cards. The justification is that BNPL can increase conversion rates and average order values by 10-30%.
What revenue retention rate should merchants target with BNPL?
Merchants should aim for at least 94-95% revenue retention after BNPL fees. In the example at 5% fee rate, retention is exactly 95% — meaning you keep $475 of every $500 order. If your product margins are 40%+, this is sustainable. At 8% fee rate, retention drops to 92%, which can erode profitability for lower-margin products. Always compare the BNPL fee against the incremental revenue it generates.