Understanding Your Authorize.net Transaction Costs
The Authorize.net Fee Calculator breaks down payment processing costs across per-transaction fees, monthly gateway charges, and projected totals.
For a business processing 100 transactions/month at $500 per sale with standard 2.9% + $0.30 pricing and a $25 gateway fee, the fee per transaction is $14.80, the total monthly cost is $1,505, and the blended rate is 3.01%.
Over 12 months, that's $18,060 in fees on $600,000 gross revenue.
The Calculation of Processing Fees
The calculator combines percentage-based charges, flat per-transaction fees, and the monthly gateway fee:
Fee Per Transaction = (Sale Amount x Percentage Rate / 100) + Flat Fee
Total Monthly Cost = (Fee Per Transaction x Monthly Transactions) + Monthly Gateway Fee
Blended Rate = Total Monthly Cost / (Sale Amount x Monthly Transactions) x 100
The blended rate is the most meaningful metric — it captures every fee you pay, not just the advertised percentage rate.
Example: Monthly Cost Breakdown for 100 Transactions
An e-commerce store processing 100 transactions/month at $500 per sale with Authorize.net's standard 2.9% + $0.30 pricing and $25 monthly gateway fee:
| Metric | Value |
|---|---|
| Fee Per Transaction | $14.80 ($14.50 percentage + $0.30 flat) |
| Effective Rate (per-tx) | 2.96% |
| Monthly Transaction Fees | $1,480.00 |
| Monthly Gateway Fee | $25.00 |
| Total Monthly Cost | $1,505.00 |
| Monthly Gross Revenue | $50,000.00 |
| Monthly Net Revenue | $48,495.00 |
| Blended Rate | 3.01% |
| Annual Total Fees | $18,060.00 |
The $0.05% gap between the effective rate (2.96%) and blended rate (3.01%) represents the $25 gateway fee spread across 100 transactions.
At lower volumes, this gap widens significantly.
When the Gateway Fee Matters Most
The $25 monthly gateway fee is fixed regardless of volume.
At 100 transactions it adds just $0.25/tx (0.05% to blended rate), but at 10 transactions it adds $2.50/tx (0.50%).
For low-volume businesses processing fewer than 50 transactions/month, consider processors without monthly fees — Stripe charges 2.9% + $0.30 with no gateway fee, saving $25/month at the same per-transaction rate.
